We recently published a list of 11 Best Consulting Stocks to Buy Right Now. In this article, we are going to look at where FTI Consulting, Inc. (NYSE:FCN) stands against other best consulting stocks to buy right now.

According to a report by Mordor Intelligence, the Consulting Service Market is valued at $354.01 billion in 2024 and is projected to reach $447.72 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 4.81%. This growth is driven by several key factors, including the increasing complexity of business operations, the rapid evolution of technology landscapes, and a heightened focus on strategic decision-making. The integration of technology into consulting services is a significant trend shaping the market. Technology-driven consulting leverages advanced tools and techniques to offer cutting-edge solutions.

Big Consulting Firms Profit Massively from AI Consulting

According to a report by the New York Times, AI is revolutionizing the consulting industry, enabling firms to achieve significant revenue growth through services such as AI strategy development, generative AI implementation, and natural language processing solutions. Consulting giants are generating hundreds of millions of dollars from AI services and reshaping the business transformation landscape. Consulting firms are not merely incorporating AI as an additional service; they are restructuring their operations around it. In just two years, Boston Consulting Group (BCG) transformed its AI consulting revenue from zero to an impressive one-fifth of its total earnings. Likewise, McKinsey is forecasting that 40% of its business will soon be AI-related.

AI is redefining efficiency in consulting. PwC’s AI solutions, for example, streamline document searches and analysis for government projects, reducing manual work and enabling deeper, faster insights. Advanced tools like these not only enhance internal processes but also provide clients with actionable intelligence that drives strategic advantage. In addition to efficiency, AI is enabling innovative business models, such as subscription-based services for continuous AI insights. AI tools are also transforming strategic decision-making by offering unbiased, data-driven insights. PwC is investing $1 billion in AI over three years, which underscores the importance of integrating AI into business strategy. According to BCC Research, the global AI consulting services market is experiencing rapid growth, growing at a 34.2% CAGR from 2023 to 2028, rising from $64.3 billion in 2023.

The consulting service market is on the cusp of substantial growth, fueled by the increasing complexity of business operations, the rapid pace of technological evolution, and a heightened focus on strategic decision-making. Big consulting firms are harnessing the power of AI to transform their business models and deliver unprecedented value to clients.

Our Methodology

To compile our list of the 11 best consulting stocks to buy right now, we used Finviz and Yahoo stock screeners to find the companies in the consulting services sector. We then used Insider Monkey’s Hedge Fund database to rank 11 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

FTI Consulting, Inc. (NYSE:FCN)

Number of Hedge Fund Investors: 19

FTI Consulting, Inc. (NYSE:FCN) is a global business consultation firm that provides strategic and operational advice to clients facing complex challenges. The company offers a wide range of services, including corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology solutions, and strategic communications. FTI Consulting, Inc. (NYSE:FCN) has a presence in over 30 countries.

FTI Consulting, Inc. (NYSE:FCN) is leveraging its deep industry expertise and global network to help clients navigate through critical issues, from financial distress and regulatory compliance to mergers and acquisitions and strategic communications. One of the key strategies FTI Consulting, Inc. (NYSE:FCN) is implementing to drive future growth is a significant focus on talent acquisition and development. In Q3, the company hired more than 320 new professionals, marking the largest class of new hires in the company’s history. This influx of fresh talent, coupled with the hiring of over 25 senior managing directors (SMDs) aims to create a pipeline of skilled and motivated individuals who can deliver exceptional value to clients and drive the firm’s long-term success.

FTI Consulting, Inc. (NYSE:FCN) is also making strategic investments to enhance its capabilities and remain at the forefront of the professional services industry. These investments include expanding the firm’s expertise in areas such as artificial intelligence (AI), cybersecurity, and data analytics. Additionally, FTI Consulting, Inc. (NYSE:FCN) is investing in marketing and legal areas to support its growth and ensure compliance with evolving regulations.

Overall, FCN ranks 9th on our list of one of the best consulting stocks to buy right now. While we acknowledge the potential of FCN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FCN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.