Here's Why FTI Consulting (FCN) Stock is a Great Pick Now
FTI Consulting FCN has had an impressive run over the past year-to-date period, gaining 39.9% compared with its industry’s 27.8% growth.
Reasons Why FCN is an Attractive Pick Now
Solid Rank:
FCN currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Earnings Expectations:
Earnings growth and stock price gains often indicate a company’s prospects. For the fourth quarter, the Zacks Consensus Estimate for FCN's earnings is pegged at $1.57 per share, up 3.3% from the year-ago figure. The estimate for the full year 2023 is pegged at $7 per share, which indicates growth of 3.4% from the year-ago reported figure. This has been revised upward 3.9% in the past 60 days. The favorable estimate revision reflects the confidence of brokers in the stock.
FTI Consulting, Inc. Price and Consensus
FTI Consulting, Inc. price-consensus-chart | FTI Consulting, Inc. Quote
Positive Earnings Surprise History:
FCN has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed on one instance, delivering an earnings surprise of 8.5%, on average.
Bullish Industry Rank:
The industry to which FTI Consulting belongs currently has a Zacks Industry Rank of 64 (of 251 groups). Such a solid rank places the industry in the top 25% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
A mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Growth Factors:
FTI Consulting has launched FTI Delta, a global strategy consulting practice, challenging traditional firms in sectors like TMT and the public sector. With 350 professionals globally, it offers specialized services. The Technology segment introduced updates to Connect and Universal Messaging Platform, addressing language processing needs from platforms like WeChat. Furthermore, FTI expanded its partnership with Relativity to provide RelativityOne in Germany and Ireland, enhancing e-discovery services. The firm also strengthened its collaboration with Reveal, thus integrating advanced AI capabilities into its disputes and investigations offerings.
FTI Consulting's commitment to shareholder value is evident through its consistent share buyback initiatives. In 2022, 2021, and 2020, the company repurchased shares amounting to $85.4 million, $46.1 million and $353.6 million, respectively. These strategic actions not only bolster investor confidence but also contribute positively to the company's earnings per share.
Other Stocks to Consider
The following top-ranked stocks from the broader Business Services sector are also worth consideration:
Gartner IT: The Zacks Consensus Estimate for Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure while earnings are expected to decline 1.9%. The company beat the consensus estimate in all the trailing four quarters, with an average surprise of 34.4%.
IT currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Rollins ROL: The Zacks Consensus Estimate for Rollins’ 2023 revenues indicates 13.7% growth from the year-ago figure while earnings are expected to grow 18.7%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 7.2%.
ROL carries a Zacks Rank of 2 at present.
Broadridge Financial Solutions BR: The Zacks Consensus Estimate for Broadridge’s 2023 revenues indicates 7.7% growth from the year-ago figure while earnings are expected to grow 10.1%. The company beat the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.
BR currently has a Zacks Rank of 2.
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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
FTI Consulting, Inc. (FCN) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
Rollins, Inc. (ROL) : Free Stock Analysis Report
