We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Retain FTI Consulting (FCN) in Your Portfolio
Read MoreHide Full Article
FTI Consulting, Inc.’s (FCN - Free Report) shares have gained 21.1% over the past year, significantly outperforming the 11.3% growth of the industry it belongs to.
With revenues expected to register 2.1% and 7.3% growth in 2020 and 2021 respectively, we believe investors should hold on to the stock.
Factors That Bode Well
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 focuses on 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 generating continued revenue growth from existing international operations.
Increased regulatory scrutiny and a proliferation of corporate litigation sustain the demand for FTI Consulting’s products.
Structural change has become a necessity in the rapidly evolving global markets as management teams look to fend off rivals, protect intellectual property rights and transform businesses via M&A, divestiture and other restructuring activities. These developments call for FTI Consulting’s specialized skill sets, which in turn drive the top line.
Some Risks
FTI Consulting’s debt level has increased significantly quarter over quarter. Total debt at the end of first-quarter 2020 was $492 million, up from the $452 million recorded at the end of the prior quarter. The total debt to total capital ratio of 0.25 was higher than the previous quarter’s 0.23. An increasing debt-to-capitalization ratio indicates that the proportion of debt to finance the company’s assets is on the rise, and so is the risk of insolvency.
Further, cash and cash equivalent balance of $223 million at the end of the first quarter was well below the debt level, underscoring that the company doesn’t have enough cash to meet its debt burden.
Zacks Rank and Stocks to Consider
FTI Consulting currently carries a Zacks Rank #3 (Hold).
The long-term expected earnings per share (three to five years) growth rate for DocuSign, SailPoint and Republic Services is 31.2%, 15% and 6.6%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Reasons to Retain FTI Consulting (FCN) in Your Portfolio
FTI Consulting, Inc.’s (FCN - Free Report) shares have gained 21.1% over the past year, significantly outperforming the 11.3% growth of the industry it belongs to.
With revenues expected to register 2.1% and 7.3% growth in 2020 and 2021 respectively, we believe investors should hold on to the stock.
Factors That Bode Well
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 focuses on 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 generating continued revenue growth from existing international operations.
Increased regulatory scrutiny and a proliferation of corporate litigation sustain the demand for FTI Consulting’s products.
Structural change has become a necessity in the rapidly evolving global markets as management teams look to fend off rivals, protect intellectual property rights and transform businesses via M&A, divestiture and other restructuring activities. These developments call for FTI Consulting’s specialized skill sets, which in turn drive the top line.
Some Risks
FTI Consulting’s debt level has increased significantly quarter over quarter. Total debt at the end of first-quarter 2020 was $492 million, up from the $452 million recorded at the end of the prior quarter. The total debt to total capital ratio of 0.25 was higher than the previous quarter’s 0.23. An increasing debt-to-capitalization ratio indicates that the proportion of debt to finance the company’s assets is on the rise, and so is the risk of insolvency.
Further, cash and cash equivalent balance of $223 million at the end of the first quarter was well below the debt level, underscoring that the company doesn’t have enough cash to meet its debt burden.
Zacks Rank and Stocks to Consider
FTI Consulting currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are DocuSign (DOCU - Free Report) , SailPoint Technologies and Republic Services (RSG - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for DocuSign, SailPoint and Republic Services is 31.2%, 15% and 6.6%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>