The US federal budget cuts have significantly affected the stocks of Accenture and IBM. Experts rush to evaluate their situations and long-term prospects.
Impact of Budget Cuts on Accenture
The recent US budget cuts have significantly impacted Accenture's stock. Amid delays and cancellations of federal contracts, the company's shares dropped by more than 6%. As of March 20, 2025, Accenture's stock was priced at $301.58, down from the previous close of $324.47. Over the past year, shares have fluctuated between $278.69 and $398.35. Despite the current downturn, analysts maintain a "Buy" recommendation, anticipating a recovery to $390.92. Accenture's market capitalization stands at $188.63 billion with a dividend yield of 1.82%.
Effect on IBM Stocks
IBM has also been affected by potential government changes, particularly with the expected presidential order to dismantle the Department of Education, for which IBM is a major vendor. On March 20, 2025, IBM's stock fell to $243.40 from the previous close of $252.29. Over the past year, shares ranged between $162.62 and $266.45. Analysts continue to recommend "Buy," with a target price of $254.51.
Financial Metrics and Forecasts
Accenture’s financial metrics show a P/E ratio of 25.26 and a forward P/E of 21.43. The company’s book value stands at $46.703 with a price-to-book ratio of 6.46 and a debt-to-equity ratio of 27.06, indicating a stable financial position. The total revenue is reported at $66.36 billion. IBM's P/E ratio is 37.97, with a forward P/E ratio of 22.94 and a debt-to-equity ratio of 213.18, reflecting a different financial strategy with total revenue of $62.75 billion. Both Accenture and IBM maintain positive analyst recommendations despite stock price fluctuations.
Despite the negative impact of the budget cuts on Accenture and IBM stocks, analysts retain confidence in the companies' long-term prospects.
