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Huron Consulting (HURN) Gains As Market Dips: What You Should Know

Zacks Equity Research

Huron Consulting (HURN) closed the most recent trading day at $58.86, moving +0.67% from the previous trading session. This change outpaced the S&P 500's 0.39% loss on the day. At the same time, the Dow lost 0.95%, and the tech-heavy Nasdaq lost 0.83%.

Coming into today, shares of the consulting company had lost 6% in the past month. In that same time, the Business Services sector lost 0.36%, while the S&P 500 lost 0.1%.

HURN will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2019. 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.50 per share and revenue of $847.71 million. These totals would mark changes of +20.19% and -3.45%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for HURN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 sporting a Zacks Rank of #3 (Hold).

Investors should also note HURN's current valuation metrics, including its Forward P/E ratio of 23.42. For comparison, its industry has an average Forward P/E of 19.08, which means HURN is trading at a premium to the group.

It is also worth noting that HURN currently has a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Consulting Services was holding an average PEG ratio of 1.41 at yesterday's closing price.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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