3 Stocks to Consider From the Prosperous Consulting Services Industry

Industry Overview - The Consulting Services industry offers professional advice across various sectors, including management, IT, human resources, and marketing, focusing on operational efficiency and digital transformation [2] - The industry has experienced exponential growth since the 2008 financial crisis, driven by digital innovation and efficiency, leading to stable revenues and dividends [3] - The sector benefits from economic recovery, with GDP growing 3.3% in Q2 2025, and strong non-manufacturing activities indicated by a Services PMI above 50% for 13 of the last 14 months [4] Demand Environment - The consulting services industry remains resilient amid global uncertainties, with organizations seeking guidance to safeguard their workforce and strengthen consumer and shareholder ties [5] - The industry's early adoption of remote collaboration has become a standard practice, supported by AI-driven insights and agile delivery frameworks [5] Market Performance - The Consulting Services industry has underperformed the S&P 500, declining 27% over the past year compared to the S&P 500's 19% gain and the broader sector's 4% rise [8] - The industry currently trades at a forward 12-month price-to-earnings (P/E) ratio of 21.54X, slightly below the S&P 500's 23.53X and the sector's 21.66X [11] Company Highlights - FTI Consulting: The company has diversified offerings and international operations, with 36% of revenues from international markets. It has achieved a compound annual growth rate of 8.5% from 2020 to 2024, and its 2025 EPS estimate has increased by 1.5% to $1.97 [15][16] - Exponent: Positioned to capitalize on technological innovation, Exponent has seen growth in dispute-related activities and proactive risk management in utilities. Its 2025 EPS estimate has increased by 0.5% to $1.97 [19][21] - Stantec: Focused on infrastructure and facilities, Stantec benefits from macroeconomic trends and maintains a disciplined approach to project execution, leading to margin improvement. Its 2025 EPS estimate has increased by 1% to $3.89 [24][26]