The consulting services industry is currently riding on improving economy, reduced tax rates, robust manufacturing and non-manufacturing activity. At the same time, it is bearing the brunt of higher talent costs due to a competitive talent market coupled with Trump’s stringent policies on immigration.
We believe that the macro drivers should offset operating challenges encountered by the industry in the long run. In fact, looking at shareholder returns over the past year, it appears that the border economic recovery is enhancing investors’ confidence in the industry.
The Zacks Consulting Services Industry , which is a stock group within the broader Zacks Business Services Sector, has outpaced the S&P 500 and its own sector in the past year.
While the stocks in this industry have collectively gained 24.5%, the Zacks S&P 500 Composite and Zacks Business Services Sector have rallied 12% and 19.1%, respectively.
One-Year Price Performance
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment