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6 Reasons to Add FTI Consulting (FCN) to Your Portfolio Now

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FTI Consulting, Inc. (FCN - Free Report) is a consulting services provider that has performed brilliantly in the year-to-date period and has the potential to sustain the momentum in the near term. Consequently, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.

What Makes FTI Consulting an Attractive Pick?

An Outperformer: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse in the year-to-date period. Shares of FTI Consulting have returned 22.9%, outperforming the 21.5% rally of the Zacks S&P 500 composite.

Solid Rank: FTI Consulting currently carries a Zacks Rank #2 (Buy) and has a Value Growth Momentum Score (VGM Score) of A. Our research shows that stocks with a VGM Scoreof A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Two estimates for 2021 moved north over the past 60 days versus no southward revision for FTI Consulting, reflecting analysts’ confidence in the stock. Over the same period, the Zacks Consensus Estimate for 2021 earnings has moved 2.1% north.

Positive Earnings Surprise History: FTI Consulting has an impressive earnings surprise history. The company outpaced the consensus mark in all of the trailing four quarters, delivering an average beat of 34.3%.

Strong Growth Prospects: The Zacks Consensus Estimate of $6.3 for FTI Consulting’s 2021 earnings reflects year-over-year growth of 5.2%. Earnings are expected to register 15.7% growth in 2022. 

Growth Factors: FTI Consulting’s potential to club diverse issues like damage assessment, accounting, economics, statistics, finance and industry under a single platform looks impressive. The company continues to pursue opportunities in areas, such as business transformation services, transaction advisory business, restructuring, retail, construction, data and analytics, cyber business, information governance, and international arbitration. This makes it an excellent partner for global clients dealing with international arbitration issues, thereby helping FTI Consulting generate continued revenue growth from its existing international operations.

FTI Consulting’s international operations help expand its geographic footprint and boost top-line growth. In 2020, the company earned almost 37% of its revenues from international businesses. The industrial and geographical diversification of its customer base, throughout the United States and internationally, helps mitigate the risks of incurring material losses.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector include ManpowerGroup (MAN - Free Report) , Equifax (EFX - Free Report)  and Genpact (G - Free Report) , each carrying a Zacks Rank #2.

The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Equifax and Genpact is pegged at 24.2%, 15.2% and 14.7%, respectively.

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