Accenture raises business outlook for 2021: time to buy?

Accenture Plc (NYSE:ACN) announced its most recent quarterly results on Thursday morning. The company’s earnings per share came in at $2.40, beating analyst expectations by $0.16. Revenue of $13.26 billion outperformed the consensus Street estimate by $450 million. Shares popped 1.66% after the company issued a bullish outlook for the fiscal year 2021.

Fundamentals overview: Accenture looks potentially undervalued

Accenture stock is up 13.26% this year and close to 44% over the last 12 months. Its recent earnings beat and upbeat guidance for the year improve the outlook. Shares could rally further before the end of the year.

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The company’s P/E ratio of 33.81 and the forward P/E of 30.41 looks relatively steep but could improve if it continues to deliver better than expected earnings. 

Technical overview: short-term pullback looks imminent

ACN share price looks poised for an immediate pullback after surging 3.75% this week. However, the stock retains a bullish outlook in an ascending channel. There is room left before it hits overbought conditions in the daily chart.

Investors can target short-term pullbacks at around $281.20. Those looking for extended gains can target profits at the current all-time highs of about $297.75.

Bottom line: ACN looks poised for a pullback, but the bullish sentiment is solid

Although Accenture shares seem poised for an immediate pullback, the general market sentiment remains positive. Therefore, the stock price is likely to bounce back after the next retreat.

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