FTI Consulting (FCN) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

FTI Consulting (FCN) closed at $119.60 in the latest trading session, marking a -0.71% move from the prior day. This move lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.66%.

Wall Street will be looking for positivity from FCN as it approaches its next earnings report date. On that day, FCN is projected to report earnings of $1.01 per share, which would represent a year-over-year decline of 41.62%. Our most recent consensus estimate is calling for quarterly revenue of $563.25 million, down 7.07% from the year-ago period.

FCN's full-year Zacks Consensus Estimates are calling for earnings of $5.54 per share and revenue of $2.40 billion. These results would represent year-over-year changes of -4.48% and +2.06%, respectively.

Investors might also notice recent changes to analyst estimates for FCN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.77% lower. FCN currently has a Zacks Rank of #3 (Hold).

In terms of valuation, FCN is currently trading at a Forward P/E ratio of 21.74. For comparison, its industry has an average Forward P/E of 21.74, which means FCN is trading at a no noticeable deviation to the group.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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