Here's Why You Should Hold FTI Consulting Stock in Your Portfolio Now

FTI Consulting, Inc.’s FCN top line is driven by diversification and international operations. Rising regulatory scrutiny and corporate litigation boost demand for the company’s products and services. Meanwhile, rising expenses hurt profitability.The Zacks Consensus Estimate for FCN’s 2024 earnings is pegged at $8.1 per share, indicating 5.1% growth from the year-ago reported level. For 2025, FTI Consulting’s bottom line is pegged at $8.6 per share, suggesting a 6.5% year-over-year increase.Factors That Auger Well for FCN’s SuccessDiversified offerings and international operations fuel FTI Consulting’s top-line growth prospects. International businesses generated nearly 37% of its revenues in 2023. The diverse array of practices and services, multiple revenue streams, industry expertise and global reach differentiate FCN from its competitors.Demand for FTI Consulting’s products is anticipated to be driven by rising regulatory scrutiny and a proliferation of corporate litigation. The necessity for structural change in the dynamic global markets as management teams look to fend off rivals, protect IP rights and transform businesses via mergers and acquisitions, divestiture and other restructuring activities calls for FCN’s specialized skill sets to boost revenues.It is impressive that FTI Consulting relies on share buybacks to reward shareholders. In 2021, 2022 and 2023, the company repurchased shares worth $46.1 million, $85.4 million and $21 million, respectively. These initiatives instill investor confidence and positively impact the bottom line.FCN's balance sheet looks strong. It had $386 million in cash and cash equivalents as of Sept. 30, 2024, against no debt. The majority of the cash is available for investments in growth initiatives.The company’s solid cash reserves contribute to its strong liquidity. At the end of the third quarter of 2024, FCN reported a current ratio of 2.09, above the industry's average of 1.25. A current ratio above 1 suggests efficient short-term debt coverage. Image Source: Zacks Investment Research Risks Faced by FTI ConsultingFCN’s operating expenses surged on the back of rising direct costs of revenues, and selling, general and administrative expenses rising significantly. Operating expenses increased 10.6% year over year in 2022 and 14.2% in 2023. Increments as such can deter investments, hurting profitability and weakening the company's appeal to investors seeking efficient cost management and robust returns.FTI Consulting never declared dividends and does not intend to. Dividend-seeking investors should avoid buying the stock.FCN’s Zacks Rank & Stocks to ConsiderFTI Consulting has a Zacks Rank #3 (Hold) at present.Some better-ranked stocks from the broader Zacks Business Services sector are CRA International, Inc. CRAI and Cintas Corporation CTAS, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CRA International has a long-term earnings growth expectation of 16.2%. CRAI delivered a trailing four-quarter earnings surprise of 31%, on average.Cintas has a long-term earnings growth expectation of 12%. CTAS delivered a trailing four-quarter earnings surprise of 7.7%, on average.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Charles River Associates (CRAI): Free Stock Analysis Report Cintas Corporation (CTAS): Free Stock Analysis Report FTI Consulting, Inc. (FCN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks