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Huron Consulting (HURN) Gains But Lags Market: What You Should Know

Zacks Equity Research

Huron Consulting (HURN) closed the most recent trading day at $60.41, moving +0.72% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.42%. At the same time, the Dow added 1.42%, and the tech-heavy Nasdaq gained 1.4%.

Prior to today's trading, shares of the consulting company had lost 4.61% over the past month. This has lagged the Business Services sector's loss of 3.28% and the S&P 500's gain of 0.38% in that time.

Investors will be hoping for strength from HURN as it approaches its next earnings release. On that day, HURN is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 3.13%. Meanwhile, our latest consensus estimate is calling for revenue of $210.22 million, down 4.33% from the prior-year quarter.

HURN's full-year Zacks Consensus Estimates are calling for earnings of $2.50 per share and revenue of $847.71 million. These results would represent year-over-year changes of +20.19% and -3.45%, respectively.

Investors might also notice recent changes to analyst estimates for HURN. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. HURN is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, HURN is currently trading at a Forward P/E ratio of 24.02. For comparison, its industry has an average Forward P/E of 19.06, which means HURN is trading at a premium to the group.

Meanwhile, HURN's PEG ratio is currently 1.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Consulting Services industry currently had an average PEG ratio of 1.59 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HURN in the coming trading sessions, be sure to utilize Zacks.com.

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