Accenture (NYSE: ACN) stock price has made a strong comeback in the past few days, helped by the company’s financial results and cost-cutting measures. It has risen in the past five straight days to a high of $280, the highest level since February 16. The shares have risen by over 15% from the lowest level this month.
Cost cutting and tech comeback
The Accenture share price has jumped after the company published strong financial results earlier this month. Its financial results showed that the company’s revenue jumped to $15.8 billion in its second quarter. This growth was mostly because of its growth markets, where its revenue rose by 14% and Europe where revenue jumped by 12%.
Accenture’s free cash flow rose to $2.2 billion while the company’s share repurchases increased to $1.1 billion. The company is implementing its share buybacks worth of over $4.2 billion. Its bookings jumped to $22.1 billion while its earnings-per-share increased by 6% to $2.69.
In all, Accenture’s business has been doing well in the past few years, helped by the strong cloud adoption. Its total revenue jumped from $40.9 billion in 2018 to over $61.5 billion in 2022. Its net income jumped from $4.06 billion to $6.8 billion. In its earnings statement, the company said that its revenue will range between $16.1 billion and $16.7 billion in the third quarter.
Accenture has also announced that it will reduce its costs in the coming months. It will do that by reducing its workforce by 19,000 people. Therefore, the company will likely see its profits continue growing. Data compiled by SeekingAlpha shows that analysts expect that its annual revenue will be $64.31 billion and $68.45 billion in 2023 and 2024, respectively.
Watch here: https://www.youtube.com/embed/ar7BOPGbdlI?feature=oembed
Accenture stock has also jumped in line with the strong comeback of technology stocks. As I wrote in this article, the Nasdaq 100 index has moved to a bull market territory.
Accenture stock price forecast
ACN stock by TradingView
The daily chart shows that the ACN share price has been in a strong bullish trend in the past few days. It has managed to move above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has moved close to the overbought level of 70
The shares have also formed what looks like a falling wedge pattern that is shown in green. In technical analysis, a falling wedge is usually a bullish sign. The stock is now approaching the upper side of the falling wedge.
Therefore, the stock will likely continue soaring as buyers target the key resistance level at $300. A move below the support at $270 will invalidate the bullish view.
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