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Should Value Investors Buy Huron Consulting Group (HURN) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Huron Consulting Group (HURN - Free Report) . HURN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 20.07, which compares to its industry's average of 23.88. Over the last 12 months, HURN's Forward P/E has been as high as 20.37 and as low as 13.95, with a median of 17.40.

Another notable valuation metric for HURN is its P/B ratio of 2.82. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.88. Within the past 52 weeks, HURN's P/B has been as high as 2.83 and as low as 1.66, with a median of 2.18.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HURN has a P/S ratio of 1.42. This compares to its industry's average P/S of 1.9.

Finally, investors will want to recognize that HURN has a P/CF ratio of 13.78. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 15.68. Over the past 52 weeks, HURN's P/CF has been as high as 20.24 and as low as 8.70, with a median of 11.83.

Another great Consulting Services stock you could consider is Information Services Group (III - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Information Services Group is trading at a forward earnings multiple of 11.37 at the moment, with a PEG ratio of 0.67. This compares to its industry's average P/E of 23.88 and average PEG ratio of 2.20.

III's Forward P/E has been as high as 19.48 and as low as 10.55, with a median of 14.66. During the same time period, its PEG ratio has been as high as 1.08, as low as 0.60, with a median of 0.81.

Information Services Group sports a P/B ratio of 2.68 as well; this compares to its industry's price-to-book ratio of 5.88. In the past 52 weeks, III's P/B has been as high as 4.25, as low as 2.39, with a median of 3.19.

These are only a few of the key metrics included in Huron Consulting Group and Information Services Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HURN and III look like an impressive value stock at the moment.


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