Accenture (ACN) has become a battleground stock, downgraded yesterday by Goldman and upgraded by Sanford Bernstein.
This morning, I saw Cognizant Technology (CTSH) mildly disappointed, and it opened down large. What I found amazing is that Accenture barely got hit.
This says to me -- a guy who told you to avoid the stock when it was flying high – is that the upgrade may have more gravitas than the downgrade.
Accenture is a tweener. It wasn't awful last year which, of course, would make it a great stock in 2012. But it wasn't great, having retreated a good amount from its high last year.
To me, with a 2.5% yield and a level of consistent performance that I find awe-inspiring, now inoculated by its good performance in the wake of competitor Cognizant, maybe you take down some Accenture as it looks like, for the moment, that the upgraders have the pulse of the market.
Random musings: Execution matters more than ever. Dick's Sporting (DKS) and Tractor Supply (TSCO) rock, and Williams-Sonoma (WSM), which disappointed, is getting hammered. I actually like WSM, but it certainly was a mistake to like it after this level of discounting.