Why Accenture Stock Raced Higher Today
On news of a fresh business partnership, investors eagerly snapped up shares of top consultancy Accenture (NYSE: ACN) on Monday. They pushed the company's stock up by almost 3% in price on the day, comparing favorably to the 0.6% rise of the S&P 500 (SNPINDEX: ^GSPC).
A new partnership with an old partner
In a joint press release, Accenture and Siemens (OTC: SIEGY) formally announced that they have formed the Accenture Siemens Business Group. The two companies said this entity would focus on the development and marketing of solutions that blend automation and industrial artificial intelligence (AI).
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Accenture Siemens Business Group will leverage Accenture's data and AI technology, and Siemens' Xcelerator digital business platform.
The partners waxed enthusiastic about the new unit in their press release. They quoted Accenture CEO Julie Sweet as saying that the Group would function as a partner that would do no less than "help clients reinvent their products and how they make them."
Accenture and Siemens "will increase speed and efficiency, reduce cost, and strengthen the digital core, which is essential for continuous reinvention and the creation of new value," Sweet added.
Safe harbor?
It's good to see an enthusiastic new business collaboration between two powerful partners, and I'm sure the Accenture Siemens Business Group will have a positive effect on the two companies.
What I find more encouraging, as far as Accenture is concerned, is that its latest business extension is with a company based outside the U.S. This feels particularly well-timed, given the uncertainty swirling around the Trump administration's policies on government efficiency and trade, both of which could negatively impact Accenture's considerable U.S. client base.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc. The Motley Fool has a disclosure policy.