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Buy 2 Stocks to Gain From the Prospering Consulting Services Industry
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Key Takeaways
Gartner sees recurring research demand, stronger client metrics and higher profitability supporting growth.
Huron Consulting expects double-digit current-year revenue and earnings growth, with estimates rising 5.4%.
The consulting industry is a major beneficiary of the broader economic strength and increasing digital drive.
The consulting services industry remains least disrupted by the recent global macroeconomic uncertainties. Even in volatile conditions, organizations seek extensive guidance on safeguarding their workforce while strengthening ties with consumers and shareholders.
The industry is a major beneficiary of the broader economic strength and increasingly digital-driven service activities. The Zacks-defined Business Services-Consulting Services industry is currently in the top 20% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the Consulting Services industry to outperform the market over the next three to six months.
Here, we recommend two consulting services stocks with a favorable Zacks Rank to invest in. These are: Gartner Inc. (IT - Free Report) and Huron Consulting Group Inc. (HURN - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our two picks in the past three months.
Image Source: Zacks Investment Research
Gartner Inc.
Zacks Rank #1 Gartner’s analyst-driven research has become an important decision tool for enterprises across sectors. IT’s differentiated research, broad client reach and mission-critical insights support demand as enterprises navigate AI, cybersecurity and other technology shifts.
IT’s higher engagement, retention and contract value trends reinforce the recurring nature of the Insights business, while Conferences adds another growth avenue. Gartner expects contract value growth to continue to rise as enterprises seek help with AI, cybersecurity and other mission-critical priorities, supporting IT’s long-term relevance.
IT raised its earnings and cash-flow outlook despite trimming revenue expectations. Recurring research demand, better client metrics, disciplined costs, higher profitability, free cash flow and sustained share repurchases are other positives.
Strong Estimate Revisions
Gartner has an expected revenue and earnings growth rate of -1.4% and 9.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the last 60 days.
IT has an expected revenue and earnings growth rate of 4% and 15%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 7.3% over the last 60 days.
Huron Consulting Group Inc.
Zacks Rank #2 Huron Consulting Group is an independent provider of financial and operational consulting services in the United States and internationally. HURN operates through three segments: Healthcare, Education and Commercial.
HURN’s experienced and credentialed professionals employ their expertise in accounting, finance, economics and operations to a wide variety of both financially sound and distressed organizations, including Fortune 500 companies, medium-sized businesses, leading academic institutions, healthcare organizations and the law firms that represent these various organizations.
Strong Estimate Revisions
Huron Consulting Group has an expected revenue and earnings growth rate of 12.4% and 17.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 60 days.
HURN has an expected revenue and earnings growth rate of 8.9% and 15.6%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 4.7% over the last 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Buy 2 Stocks to Gain From the Prospering Consulting Services Industry
Key Takeaways
The consulting services industry remains least disrupted by the recent global macroeconomic uncertainties. Even in volatile conditions, organizations seek extensive guidance on safeguarding their workforce while strengthening ties with consumers and shareholders.
The industry is a major beneficiary of the broader economic strength and increasingly digital-driven service activities. The Zacks-defined Business Services-Consulting Services industry is currently in the top 20% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the Consulting Services industry to outperform the market over the next three to six months.
Here, we recommend two consulting services stocks with a favorable Zacks Rank to invest in. These are: Gartner Inc. (IT - Free Report) and Huron Consulting Group Inc. (HURN - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our two picks in the past three months.
Image Source: Zacks Investment Research
Gartner Inc.
Zacks Rank #1 Gartner’s analyst-driven research has become an important decision tool for enterprises across sectors. IT’s differentiated research, broad client reach and mission-critical insights support demand as enterprises navigate AI, cybersecurity and other technology shifts.
IT’s higher engagement, retention and contract value trends reinforce the recurring nature of the Insights business, while Conferences adds another growth avenue. Gartner expects contract value growth to continue to rise as enterprises seek help with AI, cybersecurity and other mission-critical priorities, supporting IT’s long-term relevance.
IT raised its earnings and cash-flow outlook despite trimming revenue expectations. Recurring research demand, better client metrics, disciplined costs, higher profitability, free cash flow and sustained share repurchases are other positives.
Strong Estimate Revisions
Gartner has an expected revenue and earnings growth rate of -1.4% and 9.3%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the last 60 days.
IT has an expected revenue and earnings growth rate of 4% and 15%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 7.3% over the last 60 days.
Huron Consulting Group Inc.
Zacks Rank #2 Huron Consulting Group is an independent provider of financial and operational consulting services in the United States and internationally. HURN operates through three segments: Healthcare, Education and Commercial.
HURN’s experienced and credentialed professionals employ their expertise in accounting, finance, economics and operations to a wide variety of both financially sound and distressed organizations, including Fortune 500 companies, medium-sized businesses, leading academic institutions, healthcare organizations and the law firms that represent these various organizations.
Strong Estimate Revisions
Huron Consulting Group has an expected revenue and earnings growth rate of 12.4% and 17.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.4% over the last 60 days.
HURN has an expected revenue and earnings growth rate of 8.9% and 15.6%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 4.7% over the last 60 days.