10 Best Big-Name Stocks to Buy Right Now According to Short Sellers

5) Accenture plc (NYSE:ACN)

Number of Hedge Fund Holders: 68

Short % of Shares Outstanding (August 15, 2024): 1.06%

Accenture plc (NYSE:ACN) is a leading global IT services firm, which provides consulting, strategy, technology, and operational services.

Accenture plc (NYSE:ACN) is expected to benefit from sticky clientele. Notably, high switching costs demonstrate that its clients, primarily those with larger contracts, will not switch providers. This gives the company healthy revenue visibility. The company continues to focus on inorganic growth opportunities and has a history of growing through acquisitions.

Recently, it purchased Excelmax Technologies in India. This should help Accenture plc (NYSE:ACN) boost its silicon design and engineering capabilities. Next, it acquired True North Solutions, an industrial engineering solutions provider in Canada. This will help the company’s clients transport energy safely and more efficiently.

Also, Accenture plc (NYSE:ACN) is well-placed to benefit from the current AI wave. It can help in the development and implementation of large language models for generative AI and the identification of business data. Wall Street analysts are optimistic about its acquisition of Cientra, which is a silicon design and engineering services company providing custom silicon solutions for global clients. This should complement Accenture plc (NYSE:ACN)’s expertise in microprocessor design.

For 4Q 2024, the company expects revenue in the range of $16.05 billion and $16.65 billion, with 2% to 6% growth in local currency. Its operating cash flow for FY 2024 is expected between $9.3 billion and $9.9 billion.

UBS Group upgraded the shares of Accenture plc (NYSE:ACN) from a “Neutral” rating to a “Buy” rating. They gave a price target of $400.00 on 19^th July.

Aoris Investment Management, a specialist international equity manager, released its Q2 2024 investor letter. Here is what the fund said:

“The largest detractors for the quarter were Accenture plc (NYSE:ACN) and CDW Corp, which both fell by around 14%. Accenture and CDW are currently experiencing flattish years in terms of revenue and earnings growth. This follows a period of post-pandemic elevated demand. We believe both companies continue to gain market share.

Accenture is the world’s largest IT outsourcing and consulting company. While earnings in its quarter ended May was essentially flat, we were very encouraged by underlying demand. This demand strength is reflected in a 22% year-on-year increase in client bookings for the quarter. Further, the number of $100m+ contracts signed in the nine months to May was 92, up from 85 in the same period a year earlier. All this bodes well for Accenture’s revenue and earnings in the next few years.”