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. With that in context, let’s take a look at the 11 best consulting stocks to buy right now.
A financial advisor discussing the latest trends in IT consulting with a client.
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).
11 Best Consulting Stocks to Buy Right Now
11. Forrester Research, Inc. (NASDAQ:FORR)
Number of Hedge Fund Investors: 12
Forrester Research, Inc. (NASDAQ:FORR) is a leading independent research and advisory firm with a global presence. The company provides insights and strategies to help organizations drive growth and innovation. Forrester Research, Inc.’s (NASDAQ:FORR) client base spans various sectors, including technology, government, and international markets.
Forrester Research, Inc. (NASDAQ:FORR) is focusing on the migration of its client base to the Forrester Decisions platform, a platform designed to improve decision-making and operational processes. As of Q3, 78% of the company’s contract value (CV) has been successfully migrated to Forrester Decisions, with the company projecting to finish the year with over 80% of CV on the platform. Forrester Decisions offers unique features such as direct access to analysts and a generative AI research portal called Izola. Additionally, Forrester Research, Inc. (NASDAQ:FORR) is enhancing its product offerings to meet the evolving needs of its clients. In response to the growing interest in artificial intelligence, the company has also launched new services for data, AI, and analytics.
Forrester Research, Inc. (NASDAQ:FORR) is focusing on selling to C-level executives and standardizing sales activities by applying the FAST sales methodology to reduce the time to close deals. These elements are designed to ensure that the company’s research and insights are applied at the highest levels of organizations. The company is also leveraging its Board of Clients, a group of C-level executives from leading companies, to gain insights and feedback on its products and services. This close collaboration with clients aims to help the company stay aligned with market needs and improve its offerings.
10. Aeries Technology, Inc. (NASDAQ:AERT)
Number of Hedge Fund Investors: 13
Aeries Technology, Inc. (NASDAQ:AERT) is an innovative tech-driven company that provides operational services and support to businesses in North America, India, and Mexico. The company offers solutions such as process automation, cloud computing, and IT infrastructure optimization. Aeries Technology, Inc. (NASDAQ:AERT) serves a wide range of industries, including investment management, technology, and healthcare.
Aeries Technology, Inc. (NASDAQ:AERT) is at the forefront of the digital transformation wave, with a growing focus on AI and analytics services. The company has partnered with several leading clients to support their AI and natural language processing (NLP) efforts, including the development of large language models. By offering these high-value services, Aeries Technology, Inc. (NASDAQ:AERT) aims to enhance its gross margins and position itself as a go-to partner for clients on their AI journeys.
Aeries Technology, Inc. (NASDAQ:AERT) recently opened a new center of excellence in Mexico, which is designed to provide 24/7 coverage while significantly reducing costs. This initiative, known as “dual shoring,” combines the benefits of near-shoring in Mexico with established centers of excellence in India. By aligning with the time zones of its North American clients, Aeries Technology, Inc. (NASDAQ:AERT) aims to offer more flexible and responsive service and enhance operational efficiency.
Aeries Technology, Inc. (NASDAQ:AERT) is also actively evaluating acquisition targets to accelerate its growth. The company is focusing on targets that align with its core competencies and strategic goals. While Aeries Technology, Inc. (NASDAQ:AERT) has historically grown through a strong network effect and referrals, the company is now investing in a more structured sales and marketing strategy. Aeries Technology, Inc. (NASDAQ:AERT) has established a robust sales and marketing team with a dual focus: accelerating relationships with private equity firms and their portfolio companies and leveraging its unique engagement model to attract midsize U.S. companies.