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HCKT vs. NVEE: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Consulting Services sector might want to consider either Hackett Group (HCKT) or NV5 Holdings (NVEE). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Hackett Group and NV5 Holdings have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

HCKT currently has a forward P/E ratio of 15.51, while NVEE has a forward P/E of 25.13. We also note that HCKT has a PEG ratio of 1.15. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NVEE currently has a PEG ratio of 1.40.

Another notable valuation metric for HCKT is its P/B ratio of 3.47. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NVEE has a P/B of 3.60.

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

Both HCKT and NVEE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HCKT is the superior value option right now.


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The Hackett Group, Inc. (HCKT) : Free Stock Analysis Report
 
NV5 Global, Inc. (NVEE) : Free Stock Analysis Report
 
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