A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.
Navigant Consulting, Inc. NCI is a consulting services stock that has performed well in the past year and has the potential to sustain the momentum, going forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes Navigant an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Navigant’s shares have rallied 22.6% compared with the industry’s 7.3% rise.
Solid Zacks Rank: Navigant has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Three estimates for the current year have moved north in the past 60 days versus no downward revision, which reflects analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2018 moved up 4.7%.
Positive Earnings Surprise History: The company has an impressive earnings surprise history. The company outpaced the consensus mark in two of the trailing four quarters and matched the same on one occasion, delivering a positive average earnings surprise of 15.5%.
Strong Growth Factors: Navigant is witnessing strong segmental growth. The company’s healthcare segment is being driven by acquisitions and recruitment of senior hires. The acquisitions of Cymetrix and RevenueMed has expanded Navigant’s business process management service capabilities to hospitals and physician groups. These acquisitions and related hiring complement the company’s traditional consulting services and provide it more recurring revenue streams.
The Energy segment is benefiting from investments in hiring, solution development and acquisitions. Also, the company has broadened service offerings and expanded operations in important markets and geographies. It has expanded benchmarking, data and research services to offer a broad range of market research capabilities.
Further, the acquisition of Ecofys Investments B.V. in 2016 proved conducive. This buyout enabled Navigant to enhance capacities in energy policy, energy systems and markets, urban energy, climate strategies as well as sustainability services. Additionally, the Financial Services Advisory and Compliance segment generated growth through senior hiring.
Navigant is consistently investing in technology infrastructure to boost service offerings to efficiently meet the changing demands of clients. Further, the company has invested in development programs that are aimed toward improving sales effectiveness and collaboration across the organization. Its other focus areas include employee development, talent management and mentoring programs. We believe that these initiatives add to Navigant’s ability to grow business organically.
Stocks to Consider
A few other top-ranked stocks in the Zacks Business Services sector are BG Staffing, Inc BGSF, Total System Services, Inc TSS and Robert Half International Inc RHI, each carrying a Zacks Rank #2.
The long-term expected EPS (three to five years) growth rate for BG Staffing, Total System Services and Robert Half is 20%, 14.2%, and 13.3%, respectively.
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Navigant Consulting, Inc. (NCI) : Free Stock Analysis Report
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