Interesting Companies To Watch
HAS ACCENTURE REACHED THE END OF THE ROAD?
Accenture's stock keeps falling and is now trading around levels last seen in 2017.
The narrative is familiar: AI is going to replace consulting firms.
But has the market gone too far?
If we look at the numbers, we still see a company growing both its top line and bottom line.
It generates so much free cash flow that it continues to acquire other businesses, repurchase shares, and increase its dividend.
At the same time, the stock is reportedly trading at a P/FCF multiple of around 6.
Meanwhile, its dividend yield has climbed to roughly 5%.
What do you think? Is Accenture an attractive investment at these levels?
NEOCLOUD COMPANIES ARE CHANGING THE GAME 👀
Over the past year, the spotlight has been on Neocloud companies:
1️⃣ Nebius ($NBIS) +498%
2️⃣ Iren ($IREN) +473%
3️⃣ CoreWeave ($CRWV) -36%
Neocloud companies provide the hardware backbone for artificial intelligence, including GPUs and data center infrastructure.
In other words, they rent AI computing power to other businesses.
And demand has exploded.
Today's market is not simply rewarding growth. It is rewarding explosive growth.
As we can see, revenue forecasts point to very strong scaling over the coming years.
The key question is whether these companies can turn that growth into sustainable profits and positive cash flow without drowning in debt.
CoreWeave appears to be the most heavily leveraged of the three, and that is making investors nervous.
On the other hand, it is also the largest company in the group and is expected to deliver the strongest growth.
TEXAS ROADHOUSE: A QUIET COMPOUNDER
When people talk about American restaurant chains, most immediately think of McDonald's and Domino's.
Far fewer talk about the remarkable performance of Texas Roadhouse ($TXRH).
The company operates in the casual dining space, focusing on steaks, ribs, and classic American cuisine while offering a high quality experience at reasonable prices.
The most impressive part?
Despite the significant rise in beef prices over the past several years, Texas Roadhouse has continued to grow revenue, earnings, and free cash flow while steadily expanding its restaurant footprint.
I have been genuinely impressed by the consistency of this quiet, boring compounder that has created tremendous value for shareholders.
Analysts expect Texas Roadhouse to continue growing and increasing its free cash flow in the years ahead.
What do you think? How attractive is Texas Roadhouse as an investment today?
Buen contenido! De los mejores que vi hoy en Hive. Ahí va mi voto, seguí publicando!
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STOPOn Accenture, I think the market is overreacting. They provide consulting and implementation services for AI so I think they can actually make money off AI in the long run.
Their recent acquisitions do seem pretty aggressive though so I think it’s fair the market is skeptical and punishing them for those.
Accenture did seem overvalued in early 2025 but right now they seem to be undervalued.
It also seems to be a good dividend play right now with that 5% dividend.
Texas Roadhouse has an amazing management team, they have done a phenomenal job. They do need to continue to grow their FCF aggressively (10-15% CAGR over the next 5 years) to justify their stock price though; I think that growth is very achievable with their management team. Texas Roadhouse seems fairly priced to me.
I like Accenture too, and I am thinking of doing a trade there for the next 6 months. I love AI, but at this point, they cannot replace consulting firms, but it can make them more profitable. So it is definitely going to bounce back.
these companies need to quickly team up with ai because ai on its own is not enough yet and needs to be filtered if they do not do this they will definitely get replaced by smaller companies