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6 Reasons Investors Should Bet on FTI Consulting (FCN) Stock

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FTI Consulting, Inc. (FCN - Free Report) is a consulting services provider that has performed well in the year-to-date period and has the potential to sustain the momentum in the near term. Consequently, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.

What Makes FTI Consulting an Attractive Pick?

An Outperformer: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse in the year-to-date period. Shares of FTI Consulting have returned 31.2%, outperforming the 23.9% rise of the Zacks S&P 500 composite.

Solid Rank: FTI Consulting currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Two estimates for 2021 moved north over the past 60 days versus no southward revision for FTI Consulting, reflecting analysts’ confidence in the stock. Over the same period, the Zacks Consensus Estimate for 2021 earnings has moved 5.7% north.

Positive Earnings Surprise History: FTI Consulting has an impressive earnings surprise history.The company outpaced the consensus mark in all of the trailing four quarters, delivering an average beat of 41.8%.

Strong Growth Prospects: The Zacks Consensus Estimate of $6.66 for FTI Consulting’s 2021 earnings reflects year-over-year growth of 11.2%. Earnings are expected to register 9.8% growth in 2022.

Growth Factors: FTI Consulting’s potential to club diverse issues like damage assessment, accounting, economics, statistics, finance and industry under a single platform makes it an excellent partner for global clients dealing with international arbitration issues, thereby helping the company generate continued revenue growth from its existing international operations. In 2020, the company earned almost 37% of its revenues from international businesses. The industrial and geographical diversification of its customer base, throughout the United States and internationally, helps mitigate the risks of incurring material losses.

FTI Consulting's total debt to total capital ratio was 0.17 at the end of third-quarter 2021, lower than the previous quarter’s 0.21. Lower debt-to-capitalization ratio indicates that the proportion of debt to finance the company’s assets is declining, and so is the risk of insolvency. Further, cash and cash equivalent balance of $343 million at the end of the quarter was enough to meet the long-term debt of $319 million. The company has no current debt.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budgethas an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 511.4% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks Rank #1.

Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 190.7% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN carries a Zacks Rank #1.

CRA International has an expected earnings growth rate of around 61.2% for the current year. CRAI has a trailing four-quarter earnings surprise of 51%, on average.

CRA International’s shares have surged 86.1% in the past year. CRAI has a long-term earnings growth of 15.5%. The stock carries a Zacks Rank #2.

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