Is Accenture (ACN) an Undervalued AI Opportunity After Its Sharp Selloff?

Is Accenture (ACN) an Undervalued AI Opportunity After Its Sharp Selloff?

Mon, August 3, 2026 at 5:19 PM GMT+3 3 min read

• ACN -0.05%
• CL=F -5.67%

Diamond Hill Capital, a First Eagle Investment Management company, issued its Q2 2026 investor letter for its "Large Cap Strategy". A copy of the letter is available to download here. The Strategy returned 3.42% net of fees, trailing the Russell 1000 Value Index's 13.87% gain. Performance benefited from stock selection in consumer staples, materials and consumer discretionary, along with an underweight in utilities. However, stock selection in information technology, health care and industrials detracted from relative performance. AI remained the dominant market theme, driving an 81% gain in technology, while energy declined after the Iran war ended and oil prices fell. The Strategy's limited exposure to companies benefiting from AI-related capital spending caused most of its underperformance, while software holdings remained pressured by concerns about AI disruption. Despite elevated market valuations, the team continues to find attractive opportunities through bottom-up research and expects active management to support better-than-market returns. In addition, please check the Strategy's top five holdings to know its best picks in 2026.

In its second-quarter 2026 investor letter, Diamond Hill Capital Large Cap Strategy highlighted Accenture plc (NYSE:ACN). Accenture plc (NYSE:ACN) provides strategy and consulting, industry X, song, and technology and operation services across Americas and internationally. On July 31, 2026, Accenture plc (NYSE:ACN) closed at $165.92 per share. One-month return of Accenture plc (NYSE:ACN) was 22.05% and its shares lost 35.40% over the past 52 weeks. Accenture plc (NYSE:ACN) has a market capitalization of $103.75 billion.

Diamond Hill Capital Large Cap Strategy stated the following regarding Accenture plc (NYSE:ACN) in its Q2 2026 investor letter:

"Shares of global information technology services company Accenture plc (NYSE:ACN) underperformed after the company reported weaker-than-expected results, noting that near-term demand for its services remained subdued. These results reinforced investor concerns that AI could disrupt portions of its business. However, we believe the company remains well positioned within the broader information technology ecosystem, and its valuation remains attractive relative to its long-term prospects."

Accenture plc (NYSE:ACN) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the first quarter which was 71 in the previous quarter. While we acknowledge the potential of Accenture plc (NYSE:ACN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Accenture plc (NYSE:ACN) and shared Carillon Tower Advisers' insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.