12 Best Consulting Stocks to Buy According to Hedge Funds

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4. Verisk Analytics, Inc. (NASDAQ:VRSK)

Number of Hedge Fund Investors: 40

 One of the Best Consulting Stocks, Verisk Analytics, Inc. (NASDAQ:VRSK) is the data and analytics powerhouse of the US property and casualty insurance industry. The firm uses a large contributory database and industry contacts dating back to its inception as an insurance provider consortium to develop analytical solutions that improve underwriting and claims results, as well as operating efficiency. Along with a contributory database of over 32 billion standardized insurance transaction records, Verisk has established a proprietary dataset of P&C risks facing over 16 million commercial properties and environmental hazards facing every US postal address. It is also a leader in catastrophe modeling used by insurers, financial institutions, and governments.

Verisk Analytics, Inc. (NASDAQ:VRSK) posted solid fourth-quarter results, exceeding sales growth by 8.62% YoY and earnings projections due to value-based pricing and improved product usage. Strict cost discipline increased margins, strengthening the company’s operational strength. While the 2025 guidance forecasts mid-single-digit revenue growth amidst macroeconomic uncertainties, profitability is likely to improve in the medium term, as per Morningstar analysts. Despite cautious near-term perspective modifications, Verisk remains a high-quality, moaty business with significant intangible assets. The company has the potential for long-term growth through consistent execution and margin expansion.

Verisk Analytics, Inc. (NASDAQ:VRSK) recorded a record free cash flow of $920 million in 2024, up 11% from the previous year. The Board approved a 15% dividend raise and an additional $1 billion in share repurchase authorization.

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