Add These 4 Consulting Stocks to Enhance Your Portfolio
The Consulting Services industry has outpaced the S&P 500 Index so far this year.
The industry, which is placed in the top 29% of more than the 250 Zacks industries, has rallied 30.5% in the said time frame, comfortably surpassing the index’s rise of 19.7%.
This multi-billion dollar space has witnessed consistent revenue, profit and cash flow growth over the past several years.
Catalysts Benefiting the Industry
The performance of the industry is firmly tied to the condition of the broader economy, which is currently stable and expected to remain so in the rest of the year. Per the “third” estimate released by the Bureau of Economic Analysis (BEA) yesterday, GDP grew at an annualized rate of 2% in the second quarter of 2019, same as the “second” estimate released in August.The Fed expects GDP to grow 2.2% in 2019 and 2% in 2020.
Globalization, consolidation and digitization have been the key growth catalysts over the past few years. Industry players are increasingly expanding beyond the United States and Europe to other industrialized regions and growing economies. They have increased efforts to take advantage of AI, analytics, cybersecurity and digital trends.
Acquisitions and technology investments are rampant in the industry. For instance, Accenture ACN itself has made several acquisitions to boost its consulting capabilities. The company’s recent acquisition of Parker Fitzgerald has created one of the biggest risk and regulatory consulting practices in the United Kingdom. Capgemini has combined its consulting brand with digital and creative businesses. IBM, Deloitte, BCG and PricewaterhouseCoopers have also incorporated digital design.
4 Consulting Firms to Invest In
The industry comprises companies that offer economic, financial, business, information technology and management consulting,
With the help of the Zacks Stock Screener, we have zeroed in on four promising stocks from the consulting services industry, which have a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy). These stocks have witnessed upward earnings estimate revisions in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Huron Consulting Group Inc. HURN is a professional services company, which provides advisory, technology and analytic solutions. It sports a Zacks Rank #1 and has a market capitalization of $1.4 billion. The company’s expected earnings growth rate for 2019 is 20.2%. The Zacks Consensus Estimate for 2019 has improved 5% in the past 60 days.
Huron Consulting Group Inc. Price, Consensus and EPS Surprise
CBIZ, Inc. CBZ is a professional business services provider. It carries a Zacks Rank #2 and has a market capitalization of $1.3 billion. The company’s expected earnings growth rate for 2019 is 11.9%. The Zacks Consensus Estimate for current-year EPS has been revised 2.5% upward in the past 60 days.
CBIZ, Inc. Price, Consensus and EPS Surprise
CRA International, Inc. CRAI provides economic, financial, and management consulting services. The company has a Zacks Rank #2 and market capitalization of $342 million. The Zacks Consensus Estimate for 2019 EPS has been revised 1.1% upward in the past 60 days.
Charles River Associates Price, Consensus and EPS Surprise
CoreLogic, Inc. CLGX is a provider of property information, analytics, insight and data-enabled solutions. The company has a Zacks Rank #2 and a market capitalization of $3.7 billion. The Zacks Consensus Estimate for 2019 EPS has been revised 0.8% upward in the past 60 days.
CoreLogic, Inc. Price, Consensus and EPS Surprise
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CoreLogic, Inc. (CLGX): Free Stock Analysis Report
Charles River Associates (CRAI): Free Stock Analysis Report
Huron Consulting Group Inc. (HURN): Free Stock Analysis Report
Accenture PLC (ACN): Free Stock Analysis Report
CBIZ, Inc. (CBZ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.