Accenture investing $3 billion in "Cloud First" for clients

Accenture  announced that is is forming a $3 billion investment - Accenture Cloud First.

The investment will happen over the next three years. It is intended to help its clients transform into "cloud first" businesses. 

Accenture Cloud is a multi-service group of 70,000 cloud professionals, with a focus on accelerating companies’ movement onto the cloud.

"Digital transformation requires cloud at scale, and post-COVID leadership requires that every business become a ‘cloud first’ business," said Accenture CEO Julie Sweet .

There is  potentially a substantial opportunity in the cloud space, especially amid the coronavirus pandemic’s role in affecting workflow infrastructure. Accenture estimates that only about 20% of business are in the cloud, while the pandemic unveiled a shift in how companies do business.

Tickeron's analysis shows: 

ACN sees MACD Histogram crosses below signal line

ACN saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 03, 2020. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In 16 of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 37%.

Current price $236.82 is above $214.17 the highest support line found by A.I. Throughout the month of 08/17/20 - 09/17/20, the price experienced a +2% Uptrend. During the week of 09/10/20 - 09/17/20, the stock enjoyed a +1% Uptrend growth.

Technical Analysis (Indicators)

Bearish Trend Analysis

The 10-day RSI Indicator for ACN moved out of overbought territory on September 03, 2020. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 55 similar instances where the indicator moved out of overbought territory. In 14 of the 55 cases, the stock moved lower in the following days. This puts the odds of a move lower at 25%.

The Momentum Indicator moved below the 0 level on September 16, 2020. You may want to consider selling the stock, shorting the stock, or exploring put options on ACN as a result. In 22 of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 30%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 33%.

ACN broke above its upper Bollinger Band on September 02, 2020. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 29 of 46 cases where ACN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 81%.

Following a +2.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where ACN advanced for three days, in 189 of 360 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.

The Aroon Indicator entered an Uptrend today. In 223 of 425 cases where ACN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 52%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 48%. During the last month, the daily ratio of advancing to declining volumes was 1.64 to 1.

The Tickeron PE Growth Rating for this company is 44 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is 37 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 26 (best 1 - 100 worst), indicating outstanding price growth. ACN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 17 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.

The Tickeron Valuation Rating of 10 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.40) is normal, around the industry mean (5.33). P/E Ratio (30.99) is within average values for comparable stocks, (91.00). Projected Growth (PEG Ratio) (4.28) is also within normal values, averaging (6.12). ACN has a moderately high Dividend Yield (1.47) as compared to the industry average of (0.33). P/S Ratio (2.92) is also within normal values, averaging (7.49).