1 Stock That Will Keep Growing Despite The Coronavirus

Accenture continues to help other businesses work remotely as it ramps up its digital presence to survive the sting of the coronavirus.

This company is a jack of all trades and offers its expertise in consulting, technology, strategy and operations services to other businesses. Accenture (NYSE: ACN) is a Fortune 500 business and has built up a strong rapport with some of the worlds biggest names. It might not be a household name, but Accenture is in a really strong position as the economy plummets, and many turn to them for help.

New Acquisitions

Earlier this month, Accenture acquired a Seattle-based B2B marketing firm Yesler. The company has previously worked with big names like Microsoft (NASDAQ: MSFT), Zillow (NASDAQ: ZG) and Mindtree (NSE: MINDTREE).

This is just one of a number of companies Accenture has recently acquired. Accenture has invested in at least 7 acquisitions so far in 2020. They are mainly focused on services revolving around digital, cloud, and security. 

Not only will these purchases improve the efficiency of Accenture, but they will likely improve the cost structure. It also shows that Accenture is preparing for the future and these investments will likely create a good amount of inorganic growth and lead to more capital in the long term.  

Strong Revenue Postings

Accenture managed to exceed Wall Street’s expectations, with sales of $11.14 billion for the second quarter of 2020. This is a jump of around 6.6% at the same time last year. Its new digital venture, Yesler, accounted for 65% of its new bookings which is a clear indication for the rapid need for remote working clients.

Accenture may be in for some shakey results over the next couple of quarters, the company saying its third-quarter could have growth between -2% and 2%. It’s now expecting growth of between 3-6% instead of its initial projection of 6% for the fiscal year to account for the direct impact the coronavirus has on the business.

Strong Customer Relationships

Accenture has put a lot of time and energy into building strong relationships with its client base. 60% of its business involves having a positive ongoing relationship with some of the globe’s biggest companies.

Accenture’s customers include 94 of the Fortune 100 companies and over 80% of the Fortune 500. This business model is a clear sign that despite the tough economic times, Accenture will continue to succeed and make money in the long-term.

Helping Others Through Tough Times

As the world grapples with a viral pandemic many businesses are struggling to make money. Accenture is now playing a big role in helping businesses deal with the effects on daily operations because of the virus. 

For example, the company teamed up with Microsoft to ensure one customer who needed online collaboration and communication tools for over 60,000 of its workers was delivered in just 5 days. This is just one of many pieces that the company put together as others urgently demand more digital means as employees work from home.

What Does The Company’s Future Look Like?

Accenture’s CEO Julie Sweet says the company is in a good position to weather the coronavirus pandemic just like it did during the 2009 financial crisis. She stands by the business model and believes the services provided by Accenture will continue to be more and more relevant for a world working remotely.

The company is likely to continue building its digital skills as more employees move to use online storage systems. If you are looking at adding a consulting firm stock to your portfolio this one is looking pretty good and should make some gains over the next few quarters.

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