Jim Cramer - Mad Money Accenture Ltd. ACN-N BUY May 21, 2025

They report Thursday. Shares have fallen the past quarter, which is a shame since they should be at the forefront of AI integration into the enterprise. But they're in a tailspin, after cutting their revenue forecast.

A serial dividend increaser and share buyback story. Has returned 20% annualized over the past 10 years. Is well-positioned in a recession. Best of breed. Has owned this a while and always buys on pullbacks.

An essential player in the AI transition.

A big buy signal (candle) came in in June, and a short-term one late September. Something big changes, and then it's reflected in the charts.

They are doing a great job and have a great deal with Nvidia.

Went down, came back up, but basically flatlined. He sold in July. Bought 46 companies in the last year to the tune of about $6.6B, but it hasn't ended up on the bottom line. Has 775,000 employees. Client base is very sticky.

Buy in 1/3's here around $353, $335 (his targeted entry point), and $320.

He still likes it, despite fears that the new president will reduce inefficiencies and this will impact ACN. He disagrees. ACN is very well-run. One third of profits pay dividends, another third buys back stock and the rest buys new consulting companies. A good model they execute well.

Consulting on new technology rollouts globally for small, medium, and large businesses. Companies are going to need a lot of help implementing generative AI processes. This name is in the sweet spot for that revenue. Companies have to do this or be left behind. Yield is 1.9%.

Increased AI spending will not benefit companies with in-house IT departments where employees are being laid off. Share buybacks plus annual dividend increases. Selloff was chance to buy quality company on sale. Buying for new clients.