Accenture ($ACN) provides management consulting, technology, and outsourcing services and is normally among the first companies reporting earnings at the beginning of each quarter: I find their earnings more interesting than those of Alcoa which have traditionally been considered as the start of the earnings period.
The company reported an earnings beat for Q3 on June 28th for both EPS and revenue. Guidance was reported as being in-line with expectations. Earnings misses are rare for $ACN and the company forecasts more top- and bottom-line growth in the quarters ahead.
The company is now up 8% YTD and has beaten the market over the years doubling its value over the last 5 years and tripling its value over the last 10 years. Despite these capital appreciation figures, it also yields a 1.6% dividend to its investors.
Here is a snapshot of their operations as of the first half of 2018:
Accenture is a global leader in the digital transformation and is also seen by some as a #blockchain play.
Israel-based Solaredge ($SEDG) designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations.
The stock has shown its strength yesterday with a price increase in excess of 3% when most of the market was in red.
Its performance over the last year has been exceptional, with a peak of more than 200% and a current year-on-year capital appreciation of 148%. With this week’s move the stock is now trading above its 200 days moving average.
But the stock is not only about momentum as it still sports an attractive valuation with PEG (5 years expected) of 0,82.
Solaredge is benefitting from its digital technology in a sector still dominated by analogue devices.
Whether it is due to favorable regulation, like the recent one dictating that in California all new houses should be equipped with PV panels, or simply because switching to solar “makes perfect economic sense” to use the words of Tony Seba, Solaredge seems well positioned from riding the long wave of solar energy.
This stock is also an example of a way of investing in a company that enables the transition towards more sustainable energy resources.
Palo Alto Networks (ticker: $PANW) is a Santa Clara, California based provider of security platforms.
The stock has had a fantastic run over the last months, with a 78+% capital appreciation yoy, take a look at this chart. It has outperformed some of the ETFs that reproduce a basket of cyber-security stocks, including $ISPY.L
$FEYE, $FTNT and $CYBR are amongst its competitors and all have a lower market cap than Palo Alto Networks.
$PANW is a growth stock with a superior projected revenue growth which the analysts currently estimate at 28% per year over the next 5 years.
The PEG ratio is still reasonable at 1.85.
Palo Alto Networks is certainly a stock which has rewarded its investors over the past months and is poised to be one of the leading stocks in a time where cyber security is high on the agenda of institutions and private entities.
Whether it will continue to generate wealth to its investors will depend on its ability to transition towards a positive net margin, preferably earlier than in 2020 when this is currently expected by analysts.