Back to top

Image: Bigstock

Reasons Why Investors Should Buy FTI Consulting (FCN) Stock

Read MoreHide Full Article

FTI Consulting, Inc.’s (FCN - Free Report)  shares have gained 4.3% over the past three months and we expect this rally to accelerate going forward as the company improves upon its top- and bottom-line growth.

Factors That Bode Well

Through the rest of the year, FTI Consulting’s  corporate-finance and restructuring services are expected to gain traction driven by healthy demand in a number of verticals such as oil and gas exploration, production and drilling, department stores, financials, automotive, telecommunication services, restaurants, healthcare, entertainment, and entertainment venues.

The company is expected to see pandemic-driven rise in demand for its expertise in crisis communications, distressed transactions, litigations associated with material adverse-effect clauses, and disputes pertaining to business interruption.

The recent acquisition of certain assets of Delta Partners should strengthen FTI Consulting’s strategy-consulting offering and boost its business-transformation and transactions capabilities.

FTI Consulting, Inc. Revenue (TTM)

Numbers That Remain Encouraging

The stock currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Two estimates for 2020 moved north over the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2020 climbed 2.2%.

FTI Consulting has an impressive earnings surprise history. The company outpaced the consensus mark in two of the past four quarters, delivering an earnings surprise of 17.9%, on average.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are TeleTech Holdings (TTEC - Free Report) , BG Staffing (BGSF - Free Report) and Elastic N.V. (ESTC - Free Report) . While TeleTech and BG Staffing sport a Zacks Rank #1, Elastic carries a Zacks Rank #2.

The long-term expected earnings per share (three to five years) growth rate for CoreLogic, BG Staffing and Elastic is 12%, 20% and 26%, respectively.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>