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NVEE or HURN: Which Is the Better Value Stock Right Now?

Zacks Equity Research

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

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

NV5 Holdings and Huron Consulting are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NVEE has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

NVEE currently has a forward P/E ratio of 12.31, while HURN has a forward P/E of 24.72. We also note that NVEE has a PEG ratio of 0.62. 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. HURN currently has a PEG ratio of 1.83.

Another notable valuation metric for NVEE is its P/B ratio of 2.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, HURN has a P/B of 2.69.

These metrics, and several others, help NVEE earn a Value grade of B, while HURN has been given a Value grade of C.

NVEE sticks out from HURN in both our Zacks Rank and Style Scores models, so value investors will likely feel that NVEE is the better option right now.


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NV5 Global, Inc. (NVEE) : Free Stock Analysis Report
 
Huron Consulting Group Inc. (HURN) : Free Stock Analysis Report
 
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