Core Insights - Accenture plc (ACN) has been facing challenges for an extended period, with the last analysis conducted approximately 3.5 years ago in June 2022 [1] Group 1: Company Overview - The analysis focuses on high-quality companies that can outperform the market over the long term due to competitive advantages and high levels of defensibility [1] - The focus is primarily on European and North American companies, without constraints regarding market capitalization, ranging from large cap to small cap [1] Group 2: Analyst Background - The analyst has an academic background in sociology, holding a Master's Degree in Sociology with an emphasis on organizational and economic sociology, as well as a Bachelor's Degree in Sociology and History [1]

Core Insights - The article discusses the initiation of tracking an investable universe of 50 high-quality dividend growth stocks starting September 1, 2024 [1] Group 1 - The author has a master's degree in Analytics and a bachelor's degree in Accounting, with over 10 years of experience in the investment field [1] - The focus of the article is on dividend investing, which is described as a personal hobby of the author [1]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional stock ratings based on value, growth, and momentum [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [4] - The Growth Score assesses stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [5] - The Momentum Score evaluates stocks based on recent price changes and earnings estimate trends to identify favorable buying opportunities [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 top-rated stocks available, making it essential to use Style Scores to narrow down choices [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with high Style Scores, may still face downward price trends due to negative earnings outlooks [10] Company Spotlight: Accenture (ACN) - Accenture has established itself as a leading consulting services provider, with a revenue increase of 1.2% in fiscal 2024 [11] - Currently rated 3 (Hold) by Zacks, Accenture has a VGM Score of B and a Value Style Score of B, supported by a forward P/E ratio of 17.62 [12] - Recent upward revisions in earnings estimates by six analysts have increased the Zacks Consensus Estimate to $13.78 per share, with an average earnings surprise of +3.2% [12]

Group 1 - The core viewpoint is that the Buy call on Accenture (ACN) remains valid despite some emerging weaknesses and an oversight in the previous thesis [1] - Accenture's stock has corrected by approximately 21% since the Buy call was issued, indicating favorable valuations for new investments [1] - The analyst has over 20 years of experience in quantitative research, financial modeling, and risk management, focusing on equity valuation and market trends [1] Group 2 - The analyst emphasizes a rigorous approach to risk management combined with a long-term perspective on value creation [1] - There is a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis to provide actionable investment ideas [1]

Core Viewpoint - Accenture (ACN) is highlighted as a stable performer in a volatile market, characterized by solid fundamentals and a discounted valuation, demonstrating that "boring" can still be attractive [2] Financial Performance - ACN stock is currently priced about 36% lower than its 1-year peak and trades at a price-to-sales (PS) multiple below the average of the past 3 years, indicating a potential value investment opportunity [3] - Revenue growth stands at 7.4% for the last twelve months (LTM) and an average of 4.2% over the last 3 years, suggesting modest growth with margin and value opportunities [8] - The average operating margin for Accenture is approximately 14.4% over the past 3 years, with no significant margin decline in the past 12 months [8] - The stock is currently traded at a price-to-earnings (PE) multiple of 20.3, reflecting a modest valuation despite positive fundamentals [8] Market Trends and Returns - Average returns for ACN stock are projected at 12.7% over the next 6 months and 25.8% over the next 12 months, with a win rate exceeding 70% for both durations [9] - The stock has shown resilience, with an average 12-month return of nearly 20% during non-crash periods, maintaining a 67% win rate [9] Historical Performance and Risks - Accenture has experienced significant declines in the past, including a 38% drop during the Global Financial Crisis, a 40% decline amid the 2022 inflation impact, and a 33% decrease during the Covid pandemic [10] - The company is not immune to declines even in favorable market conditions, as stock prices can drop due to earnings reports, business news, or changes in outlook [11]

Core Insights - Columbia Threadneedle Investments reported strong market performance in Q3 2025, with a composite return of 12.06%, slightly below the S&P Global 1200 Information Technology Index's return of 12.82% [1] - The fund's positive stock selection contributed to its relative performance during the quarter [1] Company Analysis: Accenture plc (NYSE:ACN) - Accenture plc's stock experienced a one-month return of 0.78% but saw a significant decline of 27.28% over the past 52 weeks, closing at $250.10 on October 31, 2025, with a market capitalization of $155.097 billion [2] - The company's quarterly results showed mixed signals, with strong growth and margin expansion but new bookings lagging expectations, raising concerns about demand sustainability [3] - Despite the challenges, Accenture is securing large-scale AI and digital transformation projects, maintaining its strategic position in generative AI services [3] Market Position and Investment Sentiment - Accenture is not among the top 30 most popular stocks among hedge funds, with 65 hedge fund portfolios holding its stock at the end of Q2 2025, down from 69 in the previous quarter [4] - The company reported revenues of $17.6 billion for fiscal Q4 2025, reflecting a 7% increase in U.S. dollars and 4.5% in local currency [4] - While Accenture is recognized for its potential, there are suggestions that other AI stocks may offer greater upside potential with less downside risk [4]

Group 1 - The core finding of the Accenture study indicates that Europe is actively pursuing greater sovereignty in artificial intelligence (AI) [1] Group 2 - The study highlights the importance of AI sovereignty for Europe to ensure data privacy, security, and ethical standards [1] - It emphasizes the need for European companies to develop and deploy AI technologies that align with local regulations and values [1] - The research suggests that achieving AI sovereignty could enhance Europe's competitiveness in the global market [1]

Core Insights - October was a challenging month for stock selection, with the 15 selected stocks experiencing an average decline of 0.41% in value [1]. Group 1 - The SPDR S&P 500 Trust ETF was referenced, indicating a broader market context for the stock performance [1]. - The analyst has over 10 years of experience in the investment field, starting as an analyst and advancing to a management role [1]. - Dividend investing is highlighted as a personal interest of the analyst, suggesting a focus on income-generating investments [1].

Core Viewpoint - Alaska Airlines is initiating a comprehensive audit of its technology systems to enhance reliability following two significant IT outages in recent months [1] Group 1: Company Actions - The company is undertaking a full audit of its technology systems as part of a broader initiative to improve operational reliability [1]

Core Insights - Accenture is investing in Lyzr, an AI company that has developed a full-stack enterprise agent infrastructure platform to enhance banking, insurance, and financial services [1][2] - Lyzr's Agent Studio platform allows professional developers and no-code business users to create AI agents that integrate into workflows, automating tasks and improving productivity [1][2] Investment and Collaboration - The investment is made through Accenture Ventures, and Lyzr will collaborate with Accenture to implement agentic AI solutions for various industries [1][2] - Lyzr will join Accenture Ventures' Project Spotlight, which provides access to Accenture's expertise and enterprise clients, aiding startups in leveraging their technology [2] AI Capabilities and Applications - The AI agents can automate customer support, claims processing, loan approvals, and other operational tasks, enhancing efficiency and compliance with regulatory requirements [2] - Lyzr's platform offers a "Third Way" for enterprise AI, combining open-source flexibility with managed platform security, ensuring data privacy and IP ownership [2]