Accenture set the tone for the outsourcing group reporting solid results and guidance. The key to the quarter was better than expected bookings ahead of expectations. The company’s bookings are unique given its favorable positioning in the market. We note bookings can be lumpy. We believe the demand environment is stable. Accenture’s bookings were good, but a better understanding of the demand environment for next year, which investors should be getting in the upcoming months, will be needed for the new stock market highs for all stocks to be justified. In short term, we continue to be strategic trimmers of positions where possible. Our BUY-rated names are IBM, Accenture, Cognizant, Syntel, Virtusa, Genpact, EXLService, and WNS.
For more information, please contact:
Joseph D. Foresi