Evan Vitale Consulting: FTI Consulting Hits 52-Week High on Growth Drivers

Thursday, October 8, 2015

FTI Consulting Hits 52-Week High on Growth Drivers – Zacks.com

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Shares of leading provider of management services FTI Consulting, Inc. (FCN – Analyst Report) scaled a new 52-week high of $45.98 during yesterday’s trading session, before closing a notch lower at $45.23. With the uptrend in share prices, the stock has recorded an average return of 35.8% during the last one-year period, significantly higher than the benchmark S&P 500 index return of 3.5%.

Despite its strong price appreciation, this Zacks Rank #2 (Buy) stock still has the wherewithal to further drive its price upward. The stock is currently trading at a forward P/E of 21.7x and has a long-term earnings growth expectation of 12.0%.

Growth Drivers

Increased regulatory scrutiny and a proliferation of corporate litigation have strengthened demand for the company’s products. Additionally, structural change has become a necessity in the rapidly evolving global markets as management teams look to fend off rivals, protect intellectual property rights and transform businesses via M&A, divestiture and other restructuring activities. These developments call for FTI Consulting’s specialized skill set, and have resulted in a healthy revenue stream.

Acquisitions on a global basis in high-growth segments and significant investments in technology have also facilitated growth. Also, the company recently elected a few highly qualified executive officers for improving operational performance of the company in the long term. These drivers could further enhance the economic performance of the segments and regions and are likely to reap benefits for the company in 2015 and 2016.

Internationally, FTI Consulting’s unique capabilities of bringing together damage assessment, accounting, economics, statistics, finance and industry make it an excellent partner for global clients dealing with international arbitration issues, thereby generating continued revenue growth from the existing international operations. FTI Consulting’s international expansion remains strong and will likely continue in the future as well.

Last month, FTI Consulting launched a new Ringtail certification program for E-Discovery professionals. The new certification program is likely to help reviewers and administrators understand the application of analytics, which would eventually lead to faster findings, case strategy development and reduced e-discovery costs. It is likely to further help the professionals in varied organizations, law firms and government agencies to refine their skills across a number of best practices. Innovative products and services like this not only ensure a steady revenue stream for the company, but also boost investor confidence to catapult the share price to newer 52-week highs.

Other Stocks to Consider

Other stocks that look promising and are worth considering now in the industry include The Hackett Group, Inc. (HCKT – Snapshot Report), Hill International, Inc. (HIL – Snapshot Report) and Bureau Veritas SA (BVRDF – Snapshot Report), each carrying a Zacks Rank #2 (Buy).

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