Why Is Accenture Stock Up on Thursday?

Accenture shares rose about 0.5% in Thursday premarket trading, as overall stock index futures moved higher. Nasdaq futures gained 0.96%, while S&P 500 futures rose 0.37%.

Accenture followed the broader market's strength, as investors reacted to improving momentum and a repairing technical picture. The stock also remains above several key moving averages. This suggests buyers have continued to provide support during recent pullbacks.

Accenture Expands in Japan

In other news, Accenture announced an agreement to acquire Tokyo-based COMWARE Ltd. to enhance its AI, cloud, and data services for mid-sized enterprises in Japan.

COMWARE will join Accenture Edge, a unit focused on helping mid-sized companies modernize their systems and adopt AI.

The acquisition will bring more than 180 employees with expertise in SAP, Salesforce, and manufacturing technology. Accenture did not disclose the financial terms of the deal.

Technical Analysis

ACN is trading above its 20-day simple moving average of $176.20, its 50-day simple moving average of $154.38, and its 100-day simple moving average of $167.50. Therefore, the short-term trend remains positive.

However, the stock remains 11% below its 200-day simple moving average of $204.86. This gap suggests the long-term recovery is still incomplete.

Meanwhile, the Moving Average Convergence Divergence indicator is above its signal line. Its histogram is also positive. Both readings show strengthening buying momentum.

However, the trend remains mixed. The 20-day simple moving average is above the 50-day simple moving average, which is a bullish signal. But the 50-day simple moving average remains below the 200-day simple moving average. ACN shares have fallen 29.46% over the past 12 months.

Near-term resistance is at $184.50. Support is around $170, near the 100-day exponential moving average of $174.03.

Analyst Outlook

Accenture stock has a price-to-earnings ratio of 14.5x. The stock has a consensus buy rating and an average price target of $199.63.

TD Cowen raised its price target to $173 on Wednesday, maintaining a Hold rating. Wolfe Research raised its target to $215 on Tuesday, with an Outperform rating. Citigroup raised its target to $190 on Monday, maintaining a Neutral rating.

Edge Score

Edge gives Accenture weak scores for momentum, value, and growth. Its quality score is neutral.

If the stock breaks above $184.50 and holds above its short-term trend line, the technical picture could strengthen.

ETF Holdings

Accenture has a 3.40% weighting in the VictoryShares Free Cash Flow ETF. It also holds a 2.72% weighting in the SPDR S&P Dividend ETF and 2.49% in the Horizon Dividend Income ETF.

Therefore, fund inflows and outflows could impact trading activity in Accenture shares.

Price Action

Accenture shares rose 0.48% to $182.25 in Thursday pre-market trading.