3 Stocks to Consider From the Prosperous Consulting Services Industry

The Consulting Services industry is positioned for robust near-term growth, propelled by economic resilience, digital transformation, and remote work trends, reflected in its Zacks Industry Rank of #87. Despite underperforming the S&P 500 by 27% over the past year, the sector, trading at a forward 12-month P/E of 21.54x (below the S&P 500 and broader sector), offers opportunities. Stantec Inc. (STN), FTI Consulting, Inc. (FCN), and Exponent, Inc. (EXPO) are highlighted as strong considerations, driven by their diversified services, strategic positioning in key growth areas like infrastructure and technology, and solid fundamentals.

Analysis

The consulting services industry is demonstrating robust fundamental health and positive near-term growth prospects, underscored by a strong Zacks Industry Rank of #87, placing it in the top 36% of industries. This outlook is supported by favorable macroeconomic conditions, including a resilient economy with 3.3% GDP growth in Q2 2025 and a consistently strong Services PMI. Despite these positive drivers and the industry's successful adoption of remote work and digital transformation, it has significantly underperformed, declining 27% over the past year while the S&P 500 gained 19%. This divergence creates a notable valuation scenario, with the industry trading at a forward 12-month P/E of 21.54x, compared to the S&P 500's 23.53x. Specific companies are well-positioned to capitalize on these trends: FTI Consulting (FCN) benefits from geographic and service diversification, with international business comprising 36% of 2024 revenue and a revenue CAGR of 8.5% since 2020. Exponent (EXPO) is leveraged to technological complexity and emerging fields like AI usability, while Stantec (STN) is aligned with long-term structural demand in infrastructure and sustainability. Positive analyst sentiment is reflected in upward 2025 EPS consensus revisions for all three firms over the past 60 days.

Key Decisions for Investors

• Given the significant 27% market underperformance of the consulting industry against a backdrop of strong fundamentals and a favorable valuation relative to the S&P 500, investors should consider the current environment a potential entry point for building or increasing long-term exposure to the sector.
• For growth-oriented portfolios, FTI Consulting (FCN) and Exponent (EXPO) warrant close consideration due to their Zacks #2 (Buy) ratings, positive EPS estimate revisions, and strategic positioning in high-demand areas like international services and technology risk management.
• Investors with a thematic focus on infrastructure and sustainability should evaluate Stantec (STN), as it is positioned to benefit from long-term secular trends such as water security and climate change response, which may provide a durable growth runway.
• Monitor for a closing of the performance gap between the consulting industry's stock prices and its strong underlying economic drivers, as a continuation of this disconnect remains the primary risk to an otherwise bullish thesis.