Industry Overview - The consulting industry has experienced exponential growth since the 2008 financial crisis, characterized by steady revenues, profit, and cash-flow growth due to economic strength and increased service activities [1] - The industry is currently ranked in the top 7% of the Zacks Industry Rank, indicating strong performance expectations over the next three to six months [2] - The consulting services sector has been one of the least affected by the pandemic, as organizations continue to seek extensive advice on employee protection and consumer engagement [4] Company Recommendations - Five consulting stocks are recommended for portfolio strengthening, including Huron Consulting Group Inc. (HURN), CBIZ Inc. (CBZ), Stantec Inc. (STN), Information Services Group Inc. (III), and CRA International Inc. (CRAI) [3] Huron Consulting Group Inc. (HURN) - HURN operates in three segments: Healthcare, Education, and Commercial, and holds a Zacks Rank 1 (Strong Buy) [6] - Expected revenue and earnings growth rates for HURN are 8.9% and 10.5%, respectively, with a 3.5% improvement in the Zacks Consensus Estimate for current-year earnings [8] - The average short-term price target for HURN indicates a potential upside of 31.2% from the last closing price of $137.21, with targets ranging from $165 to $180 [8] CBIZ Inc. (CBZ) - CBZ provides a wide range of professional business services, including financial and employee management services, and also holds a Zacks Rank 1 [10] - Expected revenue and earnings growth rates for CBZ are 61.4% and 36%, respectively, with a 23.1% improvement in the Zacks Consensus Estimate for current-year earnings [11] - The average short-term price target for CBZ suggests a maximum upside of 23% from the last closing price of $77.24, with targets ranging from $86 to $95 [12] Stantec Inc. (STN) - STN offers professional consulting services in various fields, including planning, engineering, and environmental sciences, and holds a Zacks Rank 1 [13] - Expected revenue and earnings growth rates for STN are 7.3% and 14.2%, respectively, with a slight improvement in the Zacks Consensus Estimate for current-year earnings [15] - The average short-term price target for STN indicates a maximum upside of 19.6% from the last closing price of $86.60, with targets ranging from $94.50 to $103.60 [15] Information Services Group Inc. (III) - III operates as an AI-centered technology research and advisory company, providing digital transformation services and holds a Zacks Rank 2 [16] - Expected revenue and earnings growth rates for III are -2.6% and 35%, respectively, with a 3.9% improvement in the Zacks Consensus Estimate for current-year earnings [19] - The average short-term price target for III suggests a maximum upside of 90.7% from the last closing price of $3.67, with targets ranging from $3.75 to $7 [20] CRA International Inc. (CRAI) - CRAI provides economic, financial, and management consulting services globally and holds a Zacks Rank 2 [21] - Expected revenue and earnings growth rates for CRAI are 4.4% and 2%, respectively, with a 1.3% improvement in the Zacks Consensus Estimate for current-year earnings [24] - The average short-term price target for CRAI indicates a maximum upside of 50.5% from the last closing price of $164.25, with targets ranging from $224 to $247 [24]
5 Consulting Industry Stocks With Solid Short-Term Price Upside to Buy