Let’s dig into the relative performance of CBIZ (NYSE: CBZ) and its peers as we unravel the now-completed Q3 business process outsourcing & consulting earnings season.

The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly.

The 8 business process outsourcing & consulting stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results.

CBIZ (NYSE: CBZ)

With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.

CBIZ reported revenues of $693.8 million, up 58.1% year on year. This print fell short of analysts’ expectations by 2.2%, but it was still a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.

“We are pleased with our third quarter results, which were largely in line with our expectations. Our core, recurring essential businesses continued to perform well, and improved market conditions also resulted in improved growth within our non-recurring businesses,” said Jerry Grisko, CBIZ President and CEO.

CBIZ achieved the fastest revenue growth and highest full-year guidance raise, but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 6.2% since reporting and currently trades at $53.38.

Is now the time to buy CBIZ? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: CRA (NASDAQ: CRAI)

Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ: CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.

CRA reported revenues of $185.9 million, up 10.8% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 11.9% since reporting. It currently trades at $198.82.

Is now the time to buy CRA? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Concentrix (NASDAQ: CNXC)

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Concentrix reported revenues of $2.48 billion, up 4% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

As expected, the stock is down 29.5% since the results and currently trades at $38.80.

Read our full analysis of Concentrix’s results here.

Genpact (NYSE: G)

Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE: G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.

Genpact reported revenues of $1.29 billion, up 6.6% year on year. This print topped analysts’ expectations by 2%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 23.3% since reporting and currently trades at $47.32.

Read our full, actionable report on Genpact here, it’s free for active Edge members.

Huron (NASDAQ: HURN)

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ: HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Huron reported revenues of $441.3 million, up 16.7% year on year. This result beat analysts’ expectations by 2.3%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Huron had the weakest full-year guidance update among its peers. The stock is up 17% since reporting and currently trades at $178.40.

Read our full, actionable report on Huron here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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