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HCKT or ACN: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Consulting Services sector might want to consider either Hackett Group (HCKT - Free Report) or Accenture (ACN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Hackett Group has a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HCKT likely has seen a stronger improvement to its earnings outlook than ACN has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

HCKT currently has a forward P/E ratio of 17.42, while ACN has a forward P/E of 29.97. We also note that HCKT has a PEG ratio of 1.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ACN currently has a PEG ratio of 3.

Another notable valuation metric for HCKT is its P/B ratio of 5. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ACN has a P/B of 9.70.

Based on these metrics and many more, HCKT holds a Value grade of B, while ACN has a Value grade of C.

HCKT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HCKT is likely the superior value option right now.


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