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Here's Why You Should Hold on to FTI Consulting (FCN) Stock

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FTI Consulting, Inc. (FCN - Free Report) has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.

The company’s shares have gained 49% over the past year, against the 2.6% decline of the industry it belongs to.

Factors Aiding the Stock

FTI Consulting continues to make investments in hiring highly qualified professionals and, training and promoting them. Strong staff utilization is a key driver of the company’s revenues that increased 19.3% year over year in the fourth quarter of 2019. Although such investments increase costs and weigh on the bottom line in the near term, these are likely to benefit the company in the long run.

FTI Consulting, Inc. Revenue (TTM)

FTI Consulting is continuously enhancing its core capabilities especially in restructuring, investigations and disputes, while focusing on business transformation, cybersecurity, and corporate reputation. This is helping it cater to changing needs and requirements of clients.

A strong cash position allows FTI Consulting to pursue organic growth, acquisition and share repurchase opportunities. The company had cash and cash equivalents of $369.4 million at the end of the fourth quarter of 2019 compared with $258.5 million in the prior quarter.

Zacks Rank & Stocks to Consider

FTI Consulting currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are Interpublic (IPG - Free Report) , Omnicom (OMC - Free Report) and Genpact (G - 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.

Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Genpact is 4.5%, 5.6% and 14%, respectively.

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