Barron’s Analyst Robin Goldwyn Blumenthal recommended shares of Accenture (ACN) in this week’s Barron’s:

a. The company, a leader in management consulting and technology outsourcing, profits handsomely by helping big corporations change continually to meet the demands of their markets.Lately, the change that’s often required is downsizing — layoffs and other cost cutting. Grim as that may be for the companies and their workers, it’s hardly bad news for Accenture: It has been posting double-digit growth in revenues and earnings ever since the credit crunch began last year.

b. Accenture trades at just under 14 times  estimated earnings for the coming 12 month; there is a pristine balance sheet and cash and short-term investments of an impressive $3.4 billion.

c. Accenture serves more than 90% of the Fortune Global 100, offering both strategic advice and hands-on assistance.

d. In late June, Accenture once again raised its outlook for revenue growth in the fiscal year ending Aug. 31, to the upper end of its previously announced 9%-12% guidance in local currency.

Conclusion:

Accenture could maintain double-digit growth in revenues and earnings as companies seek help in cutting costs and becoming more efficient. With a pristine balance sheet and impressive holdings of cash and short-term investments, Accenture may be worth somewhere in the high 40’s, or 20% above its recent price.

Track Robin’s picks at:

http://www.trackthepros.com/categories.php?category_id=528