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Accenture plc (NYSE:ACN) is one of the undervalued large cap stocks to buy. On March 25, UBS analyst Kevin McVeigh reaffirmed a Buy rating and $320 price target on Accenture plc (NYSE:ACN). The analyst pointed to the company’s federal services unit and a string of recent contract wins as reasons for continued confidence in the stock.

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The subsidiary, Accenture Federal Services (AFS), provides mission-critical technology solutions to US government agencies. McVeigh noted that this unit generated roughly $5.3 billion in fiscal year 2025, which is equivalent to about 8% of Accenture’s total global revenue, 15% of its Americas revenue, and 36% of its Health & Public Service segment revenue. AFS has a workforce of around 15,000 employees.

The analyst highlighted a newly announced 4.5-year contract with the US Department of Veterans Affairs (VA). AFS has been contracted to modernize electronic health records for more than 9 million veterans through the VA’s Electronic Health Record Modernization (EHRM) program. This is a large, long-duration deal that underscores the kind of sticky, mission-critical work that AFS does, noted McVeigh. AFS had also separately secured a contract to modernize the National Weather Service’s weather system, known as NWS HIVE.

McVeigh noted that these multi-year contracts are important because they “provide visibility into Accenture Federal as it recovers from DOGE and shutdown headwinds.” This is in reference to the budget pressures and government spending cuts that had weighed on AFS in recent periods.

Accenture plc (NYSE:ACN) is a professional services company. It provides consulting, technology, and outsourcing services to businesses and governments. Its offerings include strategy and management consulting, information technology services, digital transformation, cloud migration, data and artificial intelligence solutions, and business process outsourcing.

While we acknowledge the potential of 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.

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