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Here's Why You Must Retain FTI Consulting (FCN) Stock for Now
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FTI Consulting, Inc. (FCN - Free Report) is currently aided by international operations, investor-friendly steps and increasing current ratio (a measure of liquidity).
FCN earnings are anticipated to register growth of 1.6% and 22.1% in 2022 and 2023, respectively. Shares of FCN have surged 37.5% in the past year against the industry’s decline of 9.2%.
Image Source: Zacks Investment Research
Factors That Augur Well
We believe, FTI Consulting’s international operations help expand its geographic footprint and contribute to top-line growth. In 2021, FCN earned almost 38% of its revenues from its international businesses. The industrial and geographical diversification of its customer base (throughout the United States and internationally) helps mitigate the risk of incurring material losses.
We are impressed by FTI Consulting's endeavors to reward its shareholders through share buybacks. In 2021, 2020 and 2019, FCN repurchased shares worth $46.1 million, $353.4 million and $105.9 million, respectively. These initiatives not only instill investors’ confidence in the stock but also positively impact earnings per share.
FTI Consulting's current ratio (a measure of liquidity) stood at 2.40 at the end of first-quarter 2022, higher than 1.91 recorded at the end of fourth-quarter 2021 and the prior-year quarter’s 2.32. The gradually increasing current ratio bodes for FTI Consulting. Moreover, a current ratio of more than 1.5 is usually considered good for a company. This may imply that the risk of default is less.
Some Risks
FTI Consulting makes majority of its investments in hiring highly qualified professionals as well as promoting and training individuals. Such investments are necessary to enhance growth and benefit FCN in the long term. However, escalating investments in people are likely to increase the costs incurred by FCN and dent its bottom-line growth in initial stages.
Image: Shutterstock
Here's Why You Must Retain FTI Consulting (FCN) Stock for Now
FTI Consulting, Inc. (FCN - Free Report) is currently aided by international operations, investor-friendly steps and increasing current ratio (a measure of liquidity).
FCN earnings are anticipated to register growth of 1.6% and 22.1% in 2022 and 2023, respectively. Shares of FCN have surged 37.5% in the past year against the industry’s decline of 9.2%.
Image Source: Zacks Investment Research
Factors That Augur Well
We believe, FTI Consulting’s international operations help expand its geographic footprint and contribute to top-line growth. In 2021, FCN earned almost 38% of its revenues from its international businesses. The industrial and geographical diversification of its customer base (throughout the United States and internationally) helps mitigate the risk of incurring material losses.
We are impressed by FTI Consulting's endeavors to reward its shareholders through share buybacks. In 2021, 2020 and 2019, FCN repurchased shares worth $46.1 million, $353.4 million and $105.9 million, respectively. These initiatives not only instill investors’ confidence in the stock but also positively impact earnings per share.
FTI Consulting's current ratio (a measure of liquidity) stood at 2.40 at the end of first-quarter 2022, higher than 1.91 recorded at the end of fourth-quarter 2021 and the prior-year quarter’s 2.32. The gradually increasing current ratio bodes for FTI Consulting. Moreover, a current ratio of more than 1.5 is usually considered good for a company. This may imply that the risk of default is less.
Some Risks
FTI Consulting makes majority of its investments in hiring highly qualified professionals as well as promoting and training individuals. Such investments are necessary to enhance growth and benefit FCN in the long term. However, escalating investments in people are likely to increase the costs incurred by FCN and dent its bottom-line growth in initial stages.
Zacks Rank and Stocks to Consider
FTI Consulting currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%.
Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.
Genpact carries a Zacks Rank of 2 at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 13.3%, on average.
CRA International carries a Zacks Rank #2 (Buy), currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.