Shares of Accenture Plc (NYSE:ACN) rallied to a 52-week high of $151.14 yesterday, eventually closing a bit lower at $150.69. Notably, the stock has returned 28.7% year to date, outperforming its industry’s gain of 25.4%.
The rally can be attributed to the company’s sustained focus on expanding its product portfolio through acquisitions and partnerships.
Accenture pursues strategic acquisitions to diversify its offerings and expand operating markets. The company closed 37 acquisition deals worth approximately $1.7 billion in fiscal 2017. Also, over the last three fiscals, Accenture has invested approximately $3.4 billion in acquiring nearly 70 companies including start-ups. These acquisitions have helped the company enhance its product offerings and penetrate into newer markets, thereby contributing to the company’s top line.
Furthermore, Accenture’s strategic partnerships with companies like Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) , Oracle (NYSE:ORCL) and Salesforce (NYSE:CRM) have contributed significantly toward its revenue stream. Recently, the company entered into a partnership with Apple (NASDAQ:AAPL). The two companies have collaborated to develop tools and services for building iOS apps per the requirements of Accenture’s clients across different industries.
We believe that these partnerships have helped Accenture in enhancing its capabilities across various business segments, such as IT security, CRM capabilities and strategy consulting, and bring in additional revenues.
The company’s solid track record of positive earnings surprises also boosts investors’ confidence. The stock has surpassed the Zacks Consensus Estimate for earnings in seven consecutive quarters.
Currently, Accenture holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Microsoft Corporation (MSFT): Free Stock Analysis Report
Salesforce.com Inc (CRM): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Accenture PLC (ACN): Free Stock Analysis Report
Original post
Zacks Investment Research