Accenture: The New CEO Is Starting Out With A Pretty 'Sweet' Hand

Jul. 16, 2019 11:49 AM ETAccenture plc (ACN)8 Comments
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  • Accenture's new CEO, Ms. Julie Sweet, will take over a company that is already well-positioned for the future. Simply put, she will start the game with a pretty sweet hand.
  • The company's industry is projected to grow materially over the next 5 plus years and, in my opinion, Accenture will be one of the direct beneficiaries.
  • I hold a position in Accenture and I plan to stay long the stock.
  • This idea was discussed in more depth with members of my private investing community, Going Long With W.G.. Start your free trial today »

Accenture (NYSE:ACN) announced that its board approved the appointment of Ms. Julie Sweet as the company's next CEO, effective September 1, 2019. Ms. Sweet has been apart of Accenture's senior leadership team for over a decade and she currently serves as the North American CEO.

Ms. Sweet has an extremely impressive background but, to be honest, no one truly knows how this appointment will play out for the company or its shareholders. However, what I do know is that Accenture has great long-term business prospects and that the company is already well-positioned for the future. Therefore, I believe that the new CEO will start the game with pretty sweet hand (see what I did there?).

The New CEO Will Start With A Pretty Sweet Hand

It would be an understatement to say that Accenture has promising long-term business prospects. To me, it is hard to find another technology consulting company (or company in general) that is as well-positioned as Accenture currently is. As I previously described here, Accenture is benefiting from operating in an industry that is experiencing significant growth. For example, the Internet of Things, or IoT, predictions all seem to project for the significant growth for the connected world to continue for years to come.

Source: Gartner

As shown, Gartner predicts that almost all new tech products (95%) will contain some type of IoT component by 2020. Furthermore, to put a dollar figure to the predictions, McKinsey & Company expects for IoT technology services to have a CAGR of 17% over the next five years and to reach $143B in spending by 2021.

Source: McKinsey & Company

And let's not forget that Accenture is already viewed as the go-to service provider in the IoT space. Moreover, this promising backdrop is only just getting started and, in my opinion, these estimates may actually

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This article was written by

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Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long ACN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is not a recommendation to buy or sell any stock mentioned. These are only my personal opinions. Every investor must do his/her own due diligence before making any investment decision.

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