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Reaons to Retain FTI Consulting (FCN) in Your Portfolio

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FTI Consulting, Inc. (FCN - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of quality and sustainability of its growth. FTI Consulting’s revenues are expected to register 4.8% and 12.8% growth in 2021 and 2022, respectively.

The company’s shares have gained 6% over the past three months, outperforming the 4.9% rally of the industry  it belongs to.

Factors That Bode Well

FTI Consulting’s key business strengths include a broad range of practices and services, well-diversified revenue streams, strong client relationships, specialized industry expertise, global reach and a successful track record of serving clients as a trusted advisor.

FTI Consulting, Inc. Revenue (TTM)

The company’s potential to club diverse issues like damage assessment, accounting, economics, statistics, finance and industry under a single platform looks impressive. It 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.

All these make FTI Consulting an excellent partner for global clients, thereby generating continued revenue growth.

The company has a consistent track record of share buybacks. In 2020, 2019 and 2018, it repurchased shares of worth $353.4 million, $105.9 million and $40.7 million, respectively. These initiatives not only instill investors’ confidence but also positively impact earnings per share.

Some Risks

Competition has increased the company’s costs of hiring and retaining qualified professionals, a trend that is expected to continue and weigh on the bottom line.

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 Omnicom (OMC), Gartner (IT - Free Report) and TeleTech (TTEC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for Omnicom, Gartner and TeleTech is pegged at 4.7, 13.5% and 19.4%, respectively.

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