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Are Investors Undervaluing Huron Consulting Group (HURN) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 an A grade for Value. The stock holds a P/E ratio of 16.73, while its industry has an average P/E of 29.96. Over the past year, HURN's Forward P/E has been as high as 21.65 and as low as 16.65, with a median of 19.02.

Another valuation metric that we should highlight is HURN's P/B ratio of 3.18. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. HURN's current P/B looks attractive when compared to its industry's average P/B of 6.95. Within the past 52 weeks, HURN's P/B has been as high as 3.68 and as low as 2.53, with a median of 3.37.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HURN has a P/S ratio of 1.28. This compares to its industry's average P/S of 2.11.

Finally, investors should note that HURN has a P/CF ratio of 17.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 22.54. HURN's P/CF has been as high as 20.61 and as low as 13.59, with a median of 18.84, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Huron Consulting Group is likely undervalued currently. And when considering the strength of its earnings outlook, HURN sticks out at as one of the market's strongest value stocks.


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