What is the Deloitte stock price, and are they publicly traded? Investors cannot purchase shares of Deloitte because they are a private company. However, FTI Consulting (NYSE: FCN), and Huron Consulting Group (NASDAQ: HURN), are consulting companies that traders can invest in.
Table of Contents
- Deloitte Introduction (No Stock Symbol)
- Who Is Deloitte?
- Some Alternatives to Buying Deloitte Stock
Deloitte Introduction (No Stock Symbol)
With global revenues topping $43 billion, Deloitte is an investor’s dream. As one of the four largest accounting firms in the world, it’s unfortunate you aren’t able to have it as part of your investment portfolio. However, even though you can’t purchase Deloitte stock, there are a few promising alternatives for investors. If you want to add professional services companies to your portfolios, you might want to stick around and read this.
Deloitte Touche Tohmatsu Limited, commonly referred to as Deloitte is one of the “Big Four” accounting firms. Furthermore, they are also the largest professional services network in the world!
Following closely on their coattails are PricewaterhouseCoopers (PwC), Ernst & Young, and Klynveld Peat Marwick Goerdeler (KPMG). Not to be outshined by the Big Four, BDO International rounds out the largest accounting networks in the world.
However, like Deloitte, these remaining firms are not listed publicly on stock exchanges. That means not only can you not buy Deloitte stock, but also can’t buy any others.
Who Is Deloitte?
Headquartered in London, UK, Deloitte provides a suite of services from auditing, tax preparation, consulting, enterprise risk management, and financial advisory services.
And with a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to public and private clients.
As of 2017, it was the 4th largest privately owned company in the US. And with approximately 300,000 employees globally, they earned a record $46.2 billion in 2019 alone; take a moment to let that sink in! Too bad there’s no Deloitte stock.
Gartner, the world’s leading information technology and advisory company, ranked Deloitte as the number one worldwide consulting service provider.
This is for the second consecutive year, based on 2017 and 2018 revenues in its April 2019 report titled, Gartner Market Share Analysis: Consulting Services, Worldwide, 2018*.
Of note, this is the eighth time in total that Deloitte has received the #1 ranking by revenue. It makes us wish we could invest in Deloitte stock.
While we can’t trade them, we discuss various stocks in our trading room.
Why Deloitte Can’t Be Listed on the Stock Exchange
Generally speaking, even if Deloitte wanted to be listed on the stock exchange, a few reasons stopped them. Firstly, the typical structure of accounting and law firms is as partnerships, and Deloitte is no different.
Secondly, the regulatory requirements for these companies are such that only qualified people can own a portion of the company. For these reasons, these firms are rarely, if ever, traded on a stock exchange. Hence no Deloitte stock.
What Are Some of the Challenges With Going Public?
It’s important to note your exposure once you go public and float on the stock market. For starters, the exposure to public speculation, criticism, and other regulatory controls that you didn’t need to worry about when private.
More often than not, companies often float on the stock market to raise a large amount of money. And your guess as to why is as good as mine; the options are endless to buy new equipment and expand the facility.
However, a company may remain private if it has enough capital. Take Deloitte, for example.
It would virtually be impossible to go public due to the structure of a network of independent member firms. In addition, I’m unsure how they would float a mass of the company, not to mention the legal ramifications discussed above. So there’s no Deloitte stock.
Some Alternatives to Buying Deloitte Stock
We’re always looking for stocks with the best profit potential. So when we see a great private company, it feels like we’re missing out.
As a result, we can look for similar companies trading on the stock exchange. Make sure to take our free online trading courses before you jump into Deloitte stock alternatives.
Although you can’t buy Deloitte stock or stock from any Big 4 firms, you still have options to invest in the consulting world. Take, for example, FTI Consulting (NYSE: $FCN), one of the top financial consulting firms in the world.
They consistently rank as one of the top global firms specializing in corporate finance, restructuring, economic consulting, forensic and litigation consulting, strategic communications, and technology.
Although they’ve garnered negative attention in the past (i.e., their involvement in the Lehman Brothers and GM bankruptcies), this hasn’t overshadowed their potential.
Despite the massive downturn in the stock market as of late, FTI has not only shown growth, they’ve profited! FTI has performed exceptionally well in the past year, up 75%.
Moreover, they have the potential to sustain the momentum in the near term. Consequently, you should add the stock to your portfolio if you haven’t yet taken advantage of its share price appreciation.
Of course, you might be able to find a better stock than FTI Consulting Group. But having said that, FTI still could be a lovely addition to your portfolio.
Huron Consulting Group (HURN)
Another publicly listed heavy-hitter alternative to Deloitte stock in the business consulting space is the Huron Consulting Group. HURN is a firm that provides businesses with technology and analytics services.
According to Zacks Equity Research, Huron Consulting is a top-ranked growth stock for April 2020. They are a growth stock and possess a PEG ratio of 1.36, compared with 2.28 for the industry.
Simultaneously, Huron’s had a nice streak of beating earnings estimates. Just take a look at the two previous reports, for example.
For the most recent quarter, instead of posting the expected earnings of $0.64 per share, they reported $0.79 per share instead. Likewise, in the previous quarter, the estimate was $0.66 per share, yet Huron reported $0.79 per share.
The surprise of 23.44% and 19.70% earnings above estimates provide credence to this company. However, if you want a stock with a solid history of beating earnings estimates, look at Huron Consulting (HURN).
Deloitte Stock Final Thoughts
We might not be able to trade Deloitte stock, but there are a lot of other stocks to trade with a price that is pretty attractive since the 2019 pullback. It’s known that the market moves in cycles, and you need strategies that move with those cycles. As long as enough people are running that cycle, guess what? You can capitalize on it.