Shares of FTI Consulting, Inc. FCN scaled a new 52-week high of $143.15 in the trading session on Apr 14, before closing a tad lower at $142.09.
The company’s shares have charted a solid trajectory in recent times, appreciating 76.4% over the past year against a 7.7% decline for the industry.
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Let’s find out what’s supporting the uptick.
Consecutive Earnings and Revenue Beat
FTI Consulting reported back-to-back earnings and revenue beats in the first three quarters of 2019. While higher operating profits have been benefiting the company’s bottom line, increased demand across all business segments has been aiding the top line.
A Diverse Business Model
FTI Consulting’s potential to club diverse issues like damage assessment, accounting, economics, statistics, finance and industry into a single platform looks impressive. Further, the company continues to pursue opportunities in areas such as business transformation services, transaction advisory business, restructuring, retail, construction, data and analytics, cyber business, information governance, and international arbitration. This makes it an excellent partner for global clients dealing with international arbitration issues, thereby generating continued revenue growth from the existing international operations.
Solid Global Footprint
FTI Consulting’s international operations help expand its geographic footprint and contribute to the top line. In 2019, the company earned almost 34% of total 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.
The company’s international presence remains strong and is likely to continue expanding in the future.
Zacks Rank & Other Stocks to Consider
Currently, FTI Consulting carries a Zacks Rank #2 (Buy).
Some other similar-ranked stocks in the broader Zacks Business Services sector are CoreLogic CLGX, GreenSky GSKY and Huron Consulting HURN. 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 CoreLogic, GreenSky and Huron Consulting is 11%, 12.9% and 13.5%, respectively.
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FTI Consulting, Inc. (FCN): Free Stock Analysis Report
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