Zacks Commentary: Consulting stocks stay strong

Filed under: Industry, H and R Block (HRB), Stocks to Buy

By Michael Vodicka, analyst, Zacks Investment Research

Higher energy costs have been squeezing almost every company's margins, none more significantly than the airline and auto industries. Raw materials costs continue to climb as large, developing nations like India and China compete for a limited supply of natural resources.

To make matters worse, the credit markets have locked up, making it very difficult for companies to secure the funding and capital so desperately needed to drive growth.

Help On The Way

But when the going gets tough, these companies know they can call upon a trusted ally to provide shelter from the storm. And that help comes in the form of consultants.

With substantial amounts of financial and reputational stress circulating through the economy, consultants are increasingly being called upon to provide a steady hand. These companies have seen a direct up tick in their business volumes as distressed companies search for methods to cut costs and save face.

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