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?
Over the past year, the spotlight has been on Neocloud companies:
1锔忊儯 Nebius ($NBIS) +498%
2锔忊儯 Iren ($IREN) +473%
3锔忊儯 CoreWeave ($CRWV) -36%
Neocloud companies provide the hardware backbone for artificial intelligence, including GPUs and data center infrastructure.
In other words, they rent AI computing power to other businesses.
And demand has exploded.
Today's market is not simply rewarding growth. It is rewarding explosive growth.
As we can see, revenue forecasts point to very strong scaling over the coming years.
The key question is whether these companies can turn that growth into sustainable profits and positive cash flow without drowning in debt.
CoreWeave appears to be the most heavily leveraged of the three, and that is making investors nervous.
On the other hand, it is also the largest company in the group and is expected to deliver the strongest growth.
When people talk about American restaurant chains, most immediately think of McDonald's and Domino's.
Far fewer talk about the remarkable performance of Texas Roadhouse ($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?
