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The consulting industry has been picking up momentum as of late.  The best way to demonstrate this is to look at the industry rank.  In the last week, consulting has moved into prime industry rank position, now standing among the top 45 industries out of nearly 260.  This means that it is in the top 17% of all industries.  Now, let’s focus in on 3 stocks within this momentum building industry which have considerable potential in terms of improving your portfolio now:

CBIZ inc-CBZ

CBIZ focuses on providing business services, assisting clients to manage their finances and employees.  It is one of the America’s biggest brokers of employee benefits as well as property and casualty insurance.  CBZ is a Zacks Rank #1 (Strong Buy).  Expect less volatility with the stock, as it has a beta of 0.79.  It has a PE of 13.64, so its price isn’t overblown. 

The consensus estimate has moved up since last week.  7 days ago, the consensus called for the quarter’s EPS to be $0.38.  Since then, the current EPS consensus is now $0.39.  CBZ has beaten our EPS consensus in each of the last 4 quarters by an average of 94.83%.  The most recent beat for the fourth quarter was by 233%.  There have been 3 positive estimate revisions in the past 60 days, with 0 negative revisions in that time.

CBIZ is truly outperforming the industry.  The trailing twelve month PE is 9.57, yet the industry’s is 17.02.  It is also worth noting that the company has a price/book ratio of 1.10, while the industry’s average is 2.58.  These valuation ratios shows that CBIZ is more stable and justified compared to its peers as a whole.

Huron Consulting Group inc-HURN 

Huron Consulting Group engages in operational consulting and financial services.  It provides services for financially sound institutions as well as those that are distressed.  HURN is a Zacks Rank #2 (buy). 

It has a nice PEG of 1.44, so its growth is well in line with the price it trades for right now.  Huron has beaten our EPS consensus in 3 of the last 4 quarters.  It has done so by an average of 25.7%.

The growth rate for this year is 15.1%, and the consulting industry’s as a whole is only 2.6%.  This means that Huron looks to be a strong performer and true growth stock in this space for 2015.

Corporate Executive Board-CEB

Corporate Executive Board is a consulting firm that gives services and products to businesses worldwide.  Its member clients include a majority of the Fortune 500, as well as the majority of the FTSE, for starters.  The company holds a Zacks Rank #2. 

It has a PEG of 1.79, so its price valuation is in line with the growth that the company experiences.  The company has posted earnings surprises in each of the last 3 quarters, posting a beat of 22.68% on our EPS consensus just last quarter. 

The company has an especially favorable ROE of 96.16%, while the consulting industry averages only13.78%.  CEB also has better debt to equity than the industry.  Corporate Executive Board has a debt to equity of 5.69, while the industry’s is 16.69.  Less is more when it comes to this ratio so this could be a well-positioned stock as well.

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HURON CONSLT GP (HURN): Free Stock Analysis Report
 
CORP EXEC BRD (CEB): Free Stock Analysis Report
 
CBIZ INC (CBZ): Free Stock Analysis Report
 
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