​Accenture plc (NYSE:ACN) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 18, Accenture plc (NYSE:ACN) released results for its fiscal Q1 2026. The company grew its revenue by 6% year-over-year in USD to reach $18.74 billion, surpassing Wall Street’s estimates of $18.53 billion. Moreover, the GAAP EPS of $3.54, although down 1% year-over-year also beat market expectations by $0.12. Management attributed growth to a 4% year-over-year increase in Consulting revenue, along with ...

Core Viewpoint - The consulting services industry is experiencing a positive demand environment driven by economic strength, encouraging service activities, and the success of remote work trends, making stocks like FTI Consulting, Exponent, and CBIZ attractive for investors [1][2]. Industry Overview - The consulting services industry encompasses companies providing professional advice in various fields such as management, IT, human resources, and marketing, serving multiple end markets [3]. - The industry is focusing on enhancing operational efficiency through technology, digital transformation, and data-driven decision-making to capitalize on post-pandemic economic recovery opportunities [4]. Growth Drivers - The consulting services industry has seen exponential growth since the 2008 financial crisis, supported by digital transformation and innovation, leading to stable revenues and profits [5]. - The sector benefits from a resilient economy, with GDP growth of 3.8% in Q2 2025, and strong non-manufacturing activities, as indicated by the Services PMI remaining above 50% [6]. Demand Environment - The consulting services industry has remained relatively unaffected by global uncertainties, with organizations seeking guidance to safeguard their workforce and strengthen consumer and shareholder relationships [7]. - The industry's early adoption of remote collaboration has allowed it to operate efficiently, leveraging AI-driven insights and digital platforms [7]. Industry Ranking - The consulting services industry holds a Zacks Industry Rank of 80, placing it in the top 33% of 243 Zacks industries, indicating solid near-term growth prospects [8][9]. Market Performance - Over the past year, the consulting services industry has underperformed the S&P 500, declining 27% compared to the S&P 500's gain of 18% [11]. - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 19.76X, which is below the S&P 500's 23.3X and the sector's 20.56X [12]. Company Highlights - **FTI Consulting**: The company generated nearly 36% of its revenues from international operations in 2024, with a compound annual growth rate of 8.5% from 2020 to 2024. The Zacks Consensus Estimate for 2025 EPS has increased by 4.3% to $8.43 [13][14]. - **Exponent**: Positioned to benefit from technological innovation, Exponent has seen year-over-year growth in dispute-related activities and is focusing on areas with substantial growth potential, such as digital health and AI usability. The Zacks Consensus Estimate for 2025 EPS has increased by 4.6% to $2.06 [15][16][17]. - **CBIZ**: As a major provider of financial, insurance, and advisory services, CBIZ is entering a growth phase supported by strategic expansion and the integration of Marcum, which is expected to enhance service offerings. The Zacks Consensus Estimate for 2025 EPS has increased marginally to $3.62 [17][18][19].

Core Insights - The Consulting Services industry is experiencing strong demand due to economic resilience, encouraging service activities, and the success of remote work trends, making it a favorable investment opportunity [1][5]. Industry Overview - The Consulting Services category includes companies providing professional advice across various sectors such as management, IT, human resources, and marketing, with key players like Accenture and Gartner [2]. - The industry is focused on enhancing operational efficiency through technology and data-driven decision-making, adapting to post-pandemic opportunities [2]. Future Trends - The industry has seen exponential growth since the 2008 financial crisis, driven by digital transformation and innovation, resulting in stable revenues and dividends for most players [3]. - The sector benefits from a resilient economy, with GDP growth of 3.8% in Q2 2025, and strong non-manufacturing activities indicated by a Services PMI above 50% [4]. Demand Environment - The consulting services industry remains relatively unaffected by global uncertainties, as organizations seek guidance to protect their workforce and strengthen consumer relationships [5]. - The industry's early adoption of remote collaboration has become a standard practice, supported by AI-driven insights and agile delivery frameworks [5]. Industry Performance - The Consulting Services industry has underperformed compared to the S&P 500, declining 27% over the past year, while the S&P 500 gained 18% [8]. - The industry currently trades at a forward P/E ratio of 19.76X, which is lower than the S&P 500's 23.3X and the sector's 20.56X [11]. Stock Recommendations - **FTI Consulting**: The company has diversified offerings and international operations, generating nearly 36% of its revenues from abroad, with a revenue growth rate of 8.5% CAGR from 2020 to 2024 [15]. The Zacks Consensus Estimate for 2025 EPS is $8.43, reflecting a 4.3% increase [16]. - **Exponent**: Positioned to benefit from technological innovation, Exponent has seen growth in dispute-related activities and proactive risk management, with a 4.6% increase in the Zacks Consensus Estimate for 2025 EPS to $2.06 [19][21]. - **CBIZ**: The company is entering a growth phase through strategic expansion, particularly with the integration of Marcum, which enhances its service offerings and market reach. The Zacks Consensus Estimate for 2025 EPS is $3.62 [23][24].

Core Viewpoint - UBS has raised its price target on Exponent (NASDAQ:EXPO) to $81 from $76 while maintaining a Neutral rating, following recent investor meetings with company management [1] Group 1: Management Outlook - Management conveyed a more optimistic outlook, suggesting a return to full-time equivalent employee growth could position Exponent for an improved revenue trajectory in 2026 [2] - UBS noted signs of a strengthening demand environment, particularly in proactive industries like consumer electronics, which are beginning to recover after a period of softness [2] Group 2: Financial Momentum - UBS indicated that the company's financial momentum appears to be accelerating into 2026 [3] - UBS argued that Exponent is better positioned compared to broader consulting and AI-related concerns due to its premium offerings and highly technical expertise [3] - Based on these factors, UBS stated that the setup for Exponent shares appears to be improving [3]

Wall Street analysts expect Accenture (ACN) to post quarterly earnings of $3.74 per share in its upcoming report, which indicates a year-over-year increase of 4.2%. Revenues are expected to be $18.56 billion, up 4.9% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's earning ...

Core Insights - Booz Allen Hamilton Holding Corporation (BAH) shares have increased by 4.6% over the past month, significantly outperforming the industry, which saw a decline of 0.4% [1][8] - The company has a Growth Score of A, indicating strong financial metrics that reflect the quality and sustainability of its growth [1] Factors Supporting Growth - BAH's strategy focuses on potential growth areas, emphasizing a commercially oriented, outcome-based approach while restructuring to achieve $150 million in annual cost reductions [2] - The company aims to reduce costs in stable sectors and invest in high-potential areas such as cybersecurity, AI, and warfighting technology, driven by increasing cyber threats and global AI adoption [2] Financial Position - As of September 30, 2025, BAH reported cash and equivalents of $816 million and current debt of $83 million, indicating a strong balance sheet with ample cash available for growth investments and shareholder distributions [3] - The company's liquidity is robust, with a current ratio of 1.76, surpassing the industry average of 1.19, suggesting a solid ability to meet short-term obligations [4] Risk Consideration - BAH primarily provides consulting services to the U.S. government, resulting in stable revenues but limiting rapid growth potential, which may not appeal to momentum investors [5] Comparative Analysis - BAH currently holds a Zacks Rank of 3 (Hold), while Genpact and Palantir Technologies are better-ranked stocks in the broader Business Services sector, with Zacks Ranks of 2 (Buy) [6][7]

Summary of CRA International (NasdaqGS:CRAI) 2025 Conference Call Company Overview - CRA International is celebrating its 60th anniversary, founded in 1965 by professors from Harvard and MIT to provide high-quality research in economics, finance, and strategy to assist business leaders in decision-making [3][4] - The company has approximately 1,000 consulting professionals, with 80% of its business in legal regulatory services and 20% in traditional management consulting [3][17] Financial Performance - CRA has experienced consistent growth of approximately 9%-10% annually since 2012, with profits growing at a faster rate [5][6] - The company does not have annuity-type revenue streams; instead, it operates on a project-by-project basis, requiring proof of value for each assignment [6][17] - Revenue growth is primarily organic, with about two-thirds of the growth coming from selling more hours and services, while rate increases contribute an average of 2%-4% [17] Competitive Landscape - The competitive set varies between legal regulatory services and management consulting, with CRA focusing on its core competencies in economics and regulations within life sciences and energy [21][22] - CRA has been gaining market share over the past dozen years, outpacing industry growth in both legal regulatory and management consulting sectors [22] AI and Technology Integration - AI is seen as an opportunity to enhance efficiency in research projects, but there are limitations regarding accuracy and data usage due to legal constraints [26][27][28] - The company emphasizes the importance of human expertise and creativity in consulting, which may be jeopardized by over-reliance on AI tools [29][30] - AI is also driving demand for legal services due to increased litigation related to property rights disputes [30] Client Relationships and Market Position - CRA serves 85 of the Fortune 100 companies and has worked with 98 of the Am Law 100 law firms, indicating a strong client base [48][49] - The company aims to increase its share of wallet from existing clients, focusing on becoming more client-centric rather than consulting-centric [48][49] Employee Retention and Culture - CRA has maintained a low voluntary attrition rate of around 10% over the past five years, indicating a strong workplace culture and employee satisfaction [39][43] - The company prioritizes creating value for its consultants to retain top talent, emphasizing the quality of colleagues and client relationships [43][44] International Growth Opportunities - Approximately 20% of CRA's revenue comes from international markets, with growth opportunities arising from a more vigorous regulatory environment in Europe compared to the U.S. [65] Revenue Forecasting and Engagements - At any given time, CRA has about 55%-60% of the preceding 12 months' revenue in-house, relying on industry trends and lead flow for revenue forecasting [62][63] - The company anticipates 2025 to be its eighth consecutive record year for revenue and profits, driven by strong client demand [63]

Core Viewpoint - Stantec reported quarterly earnings of $1.11 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.95 per share a year ago [1] - The company's revenues for the quarter were $1.24 billion, slightly missing the Zacks Consensus Estimate by 0.46%, but up from $1.12 billion year-over-year [2] Financial Performance - Earnings per share (EPS) for the latest quarter were $1.11, consistent with expectations, and the company has surpassed consensus EPS estimates two times in the last four quarters [1] - Revenue for the quarter was $1.24 billion, which is a 10.71% increase from the previous year's $1.12 billion [2] Market Performance - Stantec shares have increased approximately 37.5% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] - The stock's future price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94, with expected revenues of $1.23 billion, and for the current fiscal year, the EPS estimate is $3.89 on revenues of $4.74 billion [7] - The trend of estimate revisions for Stantec was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Consulting Services industry, to which Stantec belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - Accenture (ACN) stock is currently trading approximately 37% lower than its peak over the past year, with a price-to-sales (PS) multiple below the average of the last three years, indicating potential value investment opportunities [2] - The company is undergoing a strategic shift towards generative and agentic AI, with projected GenAI revenue expected to triple to $2.7 billion in FY2025 and bookings nearly doubling to $5.9 billion, driven by a $3 billion multi-year investment and recent acquisitions [3] - Despite a challenging macroeconomic environment, Accenture reported revenue of $69.7 billion in FY2025 and $80.6 billion in bookings, showcasing continued market share expansion in high-value services [3] Financial Performance - Accenture's revenue growth stands at 7.4% for the last twelve months (LTM) and an average of 4.2% over the past three years, reflecting a focus on margin and value [7] - The company maintains a strong average operating margin of approximately 14.4% over the past three years, with no significant margin collapse in the last 12 months [7] - The stock is currently trading at a price-to-earnings (PE) multiple of 19.9, indicating a modest valuation despite encouraging fundamentals [7]

Group 1: Colgate-Palmolive (CL) - Colgate-Palmolive is a consumer products company formed in 1928, focusing on personal, household, and pet products [2] - The stock price is currently $78.80, with a forward P/E ratio of 20.5x [4] Group 2: TransDigm (TDG) - TransDigm develops and manufactures components and systems for military and commercial aviation, supplying parts for nearly all aircraft in service [5] - The stock price is $1,272 per share, trading at a forward P/E of 32.7x [7] Group 3: Accenture (ACN) - Accenture is a professional services firm with approximately 774,000 employees, serving clients in over 120 countries [8] - The company has a massive revenue base of $20.1 billion and a best-in-class gross margin of 60.3% [10] - Accenture has demonstrated average organic revenue growth of 13% over the past two years, with annual earnings per share growth of 24.9% [11] - The company has achieved annual revenue growth of 9.5% over the past five years, reflecting market share gains [12]