Huron Consulting Group HURN, a Zacks Rank #1 (Strong Buy), is a company that provides financial and operational consulting services. They work with both financially sound and distressed organizations, offering their expertise in accounting, finance, economics, and operations. Their clients include Fortune 500 companies, medium-sized businesses, academic institutions, and law firms.
HURN shares have performed well, even during last year’s bear market, and have continued to show an upward trend in 2023. With a strong rating and the support of a leading industry group, the stock has been outperforming the market. It is currently trading near all-time highs and demonstrating relative strength, indicating buying pressure in this market leader.
Huron Consulting Group is part of the Zacks Consulting Services industry group, which ranks in the top 44% out of over 250 Zacks Ranked Industries. Being in the top half of all Zacks Ranked Industries suggests that this group is likely to outperform the market in the next 3 to 6 months.
Historical research has shown that a stock’s industry grouping has a significant influence on its price appreciation. The top 50% of Zacks Ranked Industries outperforms the bottom 50% by more than 2 to 1. Therefore, investing in stocks that are part of leading industry groups can increase our chances of success. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, our stock-picking success can improve.
Huron Consulting Group operates in three segments: Healthcare, Education, and Commercial. Their Healthcare segment provides advisory services to health systems, hospitals, medical groups, and care providers. The Education segment offers administrative and research services to colleges, universities, research institutes, and other education-related organizations. Their Commercial segment provides digital services and software products to various industries such as finance, energy, manufacturing, and utilities.
Huron Consulting Group has a global presence with over 5,000 employees. The company was incorporated in 2002 and is based in Chicago, Illinois.
Earnings Trends and Future Estimates
HURN has consistently surpassed earnings estimates in the last four quarters. In the second quarter, the company reported earnings of $1.38 per share, beating the consensus estimate by 40.82%. Their Q2 earnings increased by 66.3% compared to the previous year, while revenues grew by 26.9%.
The company’s management was optimistic about the quarterly results and raised their full-year EPS forecast. Historically, Huron Consulting Group has delivered an average earnings surprise of 21.75%. Consistently beating earnings estimates contributes to their success.
Analysts covering HURN have been increasing their earnings estimates recently. For the current fiscal year, earnings estimates have been raised by 9.44% in the past 60 days. The 2023 Zacks Consensus EPS Estimate is now $4.52 per share, reflecting a potential growth of 31.8% compared to the previous year. Revenues are projected to increase by 17% to $1.33 billion.
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Let’s Get Technical
HURN shares have risen by nearly 38% this year. This stock has shown a positive trend and has received positive earnings estimate revisions, making it a favorable addition to our portfolio.
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It is noteworthy that HURN stock performed well even during the previous bear market and has continued its positive trend this year. Both the 50-day and 200-day moving averages are trending upward, and the stock has been consistently reaching higher highs. With strong fundamentals and technical indicators, HURN is positioned to continue its outperformance.
Research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we have observed, Huron Consulting Group has recently experienced positive revisions. As long as this trend persists and HURN continues to beat earnings expectations, the stock is likely to maintain its bullish run this year.
HURN stock receives favorable ratings in Zacks Style Scores, with a top ‘A’ mark in the Growth category and an overall ‘B’ VGM score. The company has a promising future with increasing earnings estimates.
Backed by a leading industry group and a strong track record of earnings beats, Huron Consulting Group is an attractive investment. With solid fundamentals and a positive technical trend, adding HURN shares to our portfolio is justified.
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