12 Best Consulting Stocks to Buy According to Hedge Funds

5. ICF International, Inc. (NASDAQ:ICFI)

Number of Hedge Fund Investors: 27

ICF International, Inc. (NASDAQ:ICFI) is ranked fifth on our list of the Best Consulting Stocks. It is a technology, management, and policy consulting firm that serves both government and commercial clients, with the US government accounting for a large amount of its revenue. The stock plummeted in response to Donald Trump’s plans to significantly reduce government expenditure. However, Wasatch Long/Short Alpha Fund anticipates the cuts will significantly impact the firm. If federal government spending cuts are on their way, they may see a future in which departments rely more heavily on consultants.

ICF International, Inc. (NASDAQ:ICFI) reported strong commercial energy revenue growth in 2024, up 26% due to new contract wins, expansions, and the acquisition of Applied Energy Group. The adjusted EBITDA margin rose 30 basis points to 11.2%, leading to a 15% increase in non-GAAP EPS to $7.45. The company repurchased 395,000 shares on the open market, showing confidence in its long-term outlook. It also received more than $210 million in contracts from the European Commission and the UK government to boost research and innovation. Furthermore, operating cash flow exceeded forecasts at $171.5 million, allowing total debt to be reduced to $411.7 million by the end of the year.

ICF International, Inc. (NASDAQ:ICFI) recently received two re-compete contracts totaling more than $35 million from a major Southern electric company to administer its residential and commercial demand-side management programs. The company will use its AI-powered consumer analytics platform to improve DSM program performance, maximize energy savings, and ensure consistent power delivery. It has also launched more than 25 innovation pilots that will improve program execution and customer experience.