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Reasons to Hold FTI Consulting (FCN) Stock in Your Portfolio
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FTI Consulting, Inc. (FCN - Free Report) has had an impressive run over the past six months. The stock has gained 24.2%, outperforming the 14.3% rise of the industry it belongs to and the 15.5% rally of the Zacks S&P 500 composite.
The company’s 2023 revenues are expected to improve 10.5% year over year. Earnings are anticipated to rise 7.5% year over year in 2023.
FTI Consulting has a unique potential to bring together diverse issues like damage assessment, accounting, economics, finance and the industry on a single platform. This makes it an excellent partner for global clients, thereby generating continued revenue growth from the existing international operations. Global operations help the company to expand its geographic footprint. FCN’s revenues of $806.7 million rose 11.5% on a year-over-year basis in the first quarter of 2023.
FTI Consulting's current ratio (a measure of liquidity) stood at 2.51 at the end of first-quarter 2023, higher than the 2.4 recorded at the end of the prior-year quarter. An increase in the current ratio bodes well for FTI Consulting as it implies that the risk of default is less.
Some Risks
FTI Consulting makes the majority of its investments in hiring qualified professionals, as well as promoting and training individuals. Such investments are necessary to enhance growth and are likely to benefit the company in the long term. However, escalating investments in people are likely to weigh on the bottom line at the initial stage.
Zacks Rank and Stocks to Consider
FTI Consulting currently carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Business Services industry can consider the following better-ranked stocks:
Avis Budget (CAR - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Green Dot’s revenues suggests a decline of 1.6% year over year to $3.19 billion and the same for earnings indicates a 39.5% plunge to $9.65 per share. The company has an impressive earnings surprise history, beating the consensus mark in all the trailing four quarters, the average surprise being 65.2%.
Maximus (MMS - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Maximus’ revenues suggests an increase of 6.9% year over year to $1.2 billion and the same for earnings indicates a 46.2% rise to $1.14 per share. The company has an impressive earnings surprise history, beating the consensus mark in three instances and missing once, the average surprise being 9.6%.
MMS has a VGM Score of B and a Zacks Rank of 1.
Rollins (ROL - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Rollins’ revenues suggests growth of 12.6% year over year to $803.6 million and the same for earnings indicates a 15% increase to 23 cents per share. The company has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 5.53%.
ROL currently carries a Zacks Rank of 2 (Buy) and a Growth Score of A.
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Reasons to Hold FTI Consulting (FCN) Stock in Your Portfolio
FTI Consulting, Inc. (FCN - Free Report) has had an impressive run over the past six months. The stock has gained 24.2%, outperforming the 14.3% rise of the industry it belongs to and the 15.5% rally of the Zacks S&P 500 composite.
The company’s 2023 revenues are expected to improve 10.5% year over year. Earnings are anticipated to rise 7.5% year over year in 2023.
FTI Consulting, Inc. Price
FTI Consulting, Inc. price | FTI Consulting, Inc. Quote
Factors That Augur Well
FTI Consulting has a unique potential to bring together diverse issues like damage assessment, accounting, economics, finance and the industry on a single platform. This makes it an excellent partner for global clients, thereby generating continued revenue growth from the existing international operations. Global operations help the company to expand its geographic footprint. FCN’s revenues of $806.7 million rose 11.5% on a year-over-year basis in the first quarter of 2023.
FTI Consulting's current ratio (a measure of liquidity) stood at 2.51 at the end of first-quarter 2023, higher than the 2.4 recorded at the end of the prior-year quarter. An increase in the current ratio bodes well for FTI Consulting as it implies that the risk of default is less.
Some Risks
FTI Consulting makes the majority of its investments in hiring qualified professionals, as well as promoting and training individuals. Such investments are necessary to enhance growth and are likely to benefit the company in the long term. However, escalating investments in people are likely to weigh on the bottom line at the initial stage.
Zacks Rank and Stocks to Consider
FTI Consulting currently carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Business Services industry can consider the following better-ranked stocks:
Avis Budget (CAR - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Green Dot’s revenues suggests a decline of 1.6% year over year to $3.19 billion and the same for earnings indicates a 39.5% plunge to $9.65 per share. The company has an impressive earnings surprise history, beating the consensus mark in all the trailing four quarters, the average surprise being 65.2%.
CAR has a VGM Score of A and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Maximus (MMS - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Maximus’ revenues suggests an increase of 6.9% year over year to $1.2 billion and the same for earnings indicates a 46.2% rise to $1.14 per share. The company has an impressive earnings surprise history, beating the consensus mark in three instances and missing once, the average surprise being 9.6%.
MMS has a VGM Score of B and a Zacks Rank of 1.
Rollins (ROL - Free Report) : For second-quarter 2023, the Zacks Consensus Estimate for Rollins’ revenues suggests growth of 12.6% year over year to $803.6 million and the same for earnings indicates a 15% increase to 23 cents per share. The company has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 5.53%.
ROL currently carries a Zacks Rank of 2 (Buy) and a Growth Score of A.