Ongoing geopolitical tensions, tariff-related uncertainties, and fears of a prolonged economic slowdown through 2026 are clouding the outlook for the Zacks Consulting Services industry. Budget cuts, delayed enterprise decision-making, and tightening client discretionary spending have further weighed on near-term prospects. However, strong demand for AI-driven transformation and a corporate push for cost optimization continue to serve as a saving grace. In this context, Stantec Inc. (STN Quick QuoteSTN - Free Report) , CBIZ, Inc. (CBZ Quick QuoteCBZ - Free Report) , and Charles River Associates (CRAI Quick QuoteCRAI - Free Report) stand out as potential frontrunners, leveraging innovation and operational efficiency to stay ahead in a challenging environment.

About the Industry

Companies grouped under the Consulting Services category offer professional advice in management, IT, human resources, environmental regulations, logistics and marketing, and real estate, serving multiple end markets. The industry focuses on channeling money and efforts toward more effective operational components, such as technology, digital transformation, and data-driven decision-making. To position themselves suitably in the post-pandemic era and better utilize the opportunities that an economic recovery will bring, service providers are increasing their efforts to formulate and reassess strategic initiatives, identify sources of demand, and target end markets.

What's Shaping the Future of the Consulting Services Industry?

Exponential Growth: This multi-billion-dollar industry is poised to continue its exponential growth beyond 2025, building on the momentum gained since the 2008 financial crisis and maintaining steady revenues, profit and cash-flow expansion. Consequently, this trend is expected to enable most industry players to sustain or even enhance their stable dividend payouts.

Strong Demand Environment: The consulting services industry is expected to remain one of the least affected by future crises, building on its resilience shown during the pandemic and its after-effects. This is because even in volatile situations, organizations will continue to require extensive advice on protecting their employees and staying closer to consumers and shareholders. The industry, being one of the earliest pioneers of remote working — which has now become a permanent aspect of the work culture — is well-positioned for the future. The nature of work will continue to enable industry players to function efficiently through the increased and evolving use of technology.

Economic weakness: The recent slowdown in economic activity is weighing on the consulting industry, albeit likely temporarily. According to the third estimate released by the Bureau of Economic Analysis, GDP declined at an annual rate of 0.5% in the first quarter of 2025, following a 2.4% increase in the fourth quarter of 2024. In addition, services-sector activity contracted in May for the first time since June 2024, with the ISM Services PMI slipping to 49.9, just below the 50% threshold that separates expansion from contraction. This marks only the fourth time in 60 months the services sector has contracted since the post-COVID recovery began in June 2020. The deceleration reflects cautious corporate spending and project delays amid macroeconomic uncertainty, but underlying demand for long-term transformation and advisory services remains intact.

Zacks Industry Rank Signals Challenging Outlook

The Consulting Services industry, housed within the broader Business Services sector, currently carries a Zacks Industry Rank #165. This rank places it in the bottom 32% of 244 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates solid near-term growth prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and current valuation.

Industry's Price Performance

The Consulting Services industry has underperformed the S&P 500 composite and the broader sector in the past year. The industry has lost 8.3% against the S&P 500 composite’s rally of 11.3% and the broader sector’s rise of 11.9%.

One-Year Price Performance

Industry's Current Valuation

On the basis of the forward 12-month price-to-earnings (P/E), which is a commonly used multiple for valuing consulting services companies, we see that the industry is currently trading at 24.51X, above the S&P 500’s 22.13X and the sector’s 21.94X.

Over the past five years, the industry has traded as high as 31.12X and as low as 22.03X, with a median of 26.5X, as the charts below show.

Price to Forward 12 Months P/E Ratio

3 Consulting Services Stocks to Consider

Stantec: The company provides professional services in the areas of infrastructure and facilities. It remains well-positioned for continued success, supported by industry resilience and effective internal strategies. The company benefits from strong macroeconomic and structural drivers while maintaining sharp execution on its projects, enabling margin expansion and earnings growth.

Stantec operates in a resilient sector shaped by long-term global needs, including water security, aging infrastructure, climate change response, advanced manufacturing and emerging technologies. These trends are expected to sustain strong project demand across regions.

Stantec’s consistent focus on high-quality project execution and addressing clients’ most urgent infrastructure and sustainability challenges supports steady growth. This disciplined approach continues to drive margin improvement and robust earnings performance. The Zacks Consensus Estimate for the company’s 2025 EPS increased nearly 1% in the past 30 days to $3.86. STN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: STN

CBIZ: With its service breadth and specialized expertise, this provider of financial, insurance and advisory services has established itself as one of the largest professional services providers for middle-market businesses, solidifying its competitive edge and long-term growth potential.

CBIZ is entering a strong growth phase, fueled by strategic expansion and a reinforced market position. The integration of Marcum is expected to unlock new synergies, enhance service offerings, and strengthen relationships with clients and stakeholders. The Marcum transaction significantly expands CBIZ’s capabilities and client base, positioning the firm for broader market reach and cross-selling opportunities.

The Zacks Consensus Estimate for the company’s 2025 EPS has remained unchanged at $3.62 in the past 30 days. CBIZ currently carries a Zacks Rank #3.

Price and Consensus: CBZ

 

Charles River Associates: The company offers economic, financial, and management consulting services worldwide. CRAI, as a relatively small player in the consulting and research services sector, presents a compelling narrative when evaluating its market position and growth potential. The company has carved out a niche with its strong reputation for delivering high-quality analytical and strategic consulting services across diverse industries.

Despite its size, CRAI benefits from the growing demand for specialized advisory services in an increasingly complex global marketplace. Its ability to attract top talent, combined with a focus on innovation and client-centered solutions, positions it for significant growth. As industries grapple with rapid technological advancements, regulatory complexities, and evolving market dynamics, CRAI's expertise could see rising demand, allowing it to capture a larger share of its addressable market. Additionally, its proven track record of delivering value to clients may help it sustain long-term partnerships, further bolstering its growth trajectory.

Given the nature of the business, CRAI’s success depends on the talent that it can acquire and retain. The company has built and sustained a strong reputation for delivering high-quality consulting services, driven by its highly qualified professionals. Around 74% of its senior staff hold advanced degrees, including doctorates, and are recognized field leaders. At the end of 2024, CRAI had 946 consulting staff, comprising 151 officers, 552 other senior staff and 243 junior staff.

The Zacks Consensus Estimate for the company’s 2025 EPS has remained unchanged at $8 in the past 30 days. CRAI currently carries a Zacks Rank #3.

Price and Consensus: CRAI