Multinational professional services firm Accenture plc (ACN) calmed the fears of investors about a slowdown in corporate spending in the industry, after reporting better-than-expected third-quarter results and lifted its 2020 forecasts.
The Fortune 500 company shows a profit of $125 billion – or $1.90 per share in the coronavirus pandemic-affected quarter, down 1.6% year on year, but easily surpassing analysts ‘ expectations of $1.85 per share. Net revenue of $10.99 billion also came in ahead of Wall Street’s projections, with the company’s Health & Public Service segment to boost the top line.
For the future, Accenture has raised the lower end of its fiscal 2020 earnings guidance range to between $7.57 and $7.70 per share between $7.48 and $7.70. It has also raised its cash flow forecast to between $ 5.8 billion and $6.3 billion from a prior band of $ 5.5 billion to $6 billion.
From a technical point of view, the good result has led to a major breakthrough yesterday over a two-week pennant pattern, and the pre-crisis February high in a move that may lead to short-and medium-term, the bullish momentum. In addition, a recent cross of the 50 day simple moving average (SMA) above the 200-day SMA – referred to by technical analysts as a golden cross signals a new upward trend. Those who buy the stock should place a stop order just below the psychological $200 level and think about using a trailing stop profit to the bank.
Below, we look at two other prominent computer services stocks, which have registered profit growth in the March quarter, despite the headwinds of the pandemic.
Cognizant Technology Solutions Corporation (CTSH)
Cognizant Technology Solutions Corporation (CTSH) to work global it service provider, offers consulting and outsourcing services to companies in various industries. The professional services firm has managed to find a profit of 92 cents per share in the first quarter, up from 91 cents per share, in the same quarter of the previous fiscal year. Earlier this month, bank of america Securities analyst Jason Kupferberg upgraded Aware of the Technology actions, saying that he sees coronavirus related to demand pressure is easing in the second half of the year. As of June 26, 2020, Cognizant Technology stock has a market value of $30.05 billion, offers a 1.59% dividend yield, and trades at a 17% increase since the end of March.
The shares of the company are grouped within a symmetrical triangle over the last two months, with price finding support in the session of Thursday, from the bottom of the trendline and the 50-day SMA. Active traders of the who for further progress should consider the creation of a take-profit order to close 52-week high of $70.90, but limit losses if the stock fails to hold above the June low at $52.48.
Gartner, Inc. (IT)
With a market capitalization of $10.63 billion, according to Gartner, Inc. (IT) provides independent research and analysis on information technology which helps customers to plan their it budgets. The Stamford, Conn., the company’s net income for the first quarter increased 107% from the month of March, 2019 quarter thanks to ongoing strength in its research segment. The figure also topped Wall Street’s bottom-line, the expectations for the fifth consecutive quarter. Gartner’s stock has returned 32% over the last three months, outperforming the information technology services of the industry average during the same period nearly 10%, effective 26 June 2020.
After running into resistance at the 200-day SMA earlier this month, Gartner shares have retraced to the 50 days SMA, where they were well taken care of by this indicator over the past two weeks. Those who enter at these levels should aim to take profits around $148, where the price may encounter resistance from 12 months horizontal trend line. Manage the risk by placing a stop below the June 15 low at $114.36 and amending the decree of the point of balance if the stock close above intermediate resistance at $137.