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Is The Hackett Group (HCKT) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is The Hackett Group (HCKT). HCKT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.89, while its industry has an average P/E of 21.95. Over the past 52 weeks, HCKT's Forward P/E has been as high as 17.20 and as low as 10.89, with a median of 13.38.


HCKT is also sporting a PEG ratio of 0.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HCKT's PEG compares to its industry's average PEG of 2.17. Over the last 12 months, HCKT's PEG has been as high as 1.11 and as low as 0.74, with a median of 0.88.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HCKT has a P/S ratio of 1.61. This compares to its industry's average P/S of 1.67.

Finally, investors should note that HCKT has a P/CF ratio of 12.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.82. Over the past year, HCKT's P/CF has been as high as 16.76 and as low as 11.15, with a median of 13.46.

Another great Consulting Services stock you could consider is Huron Consulting Group (HURN), which is a # 2 (Buy) stock with a Value Score of A.

Huron Consulting Group sports a P/B ratio of 2.73 as well; this compares to its industry's price-to-book ratio of 5.31. In the past 52 weeks, HURN's P/B has been as high as 2.99, as low as 1.67, with a median of 2.44.

Value investors will likely look at more than just these metrics, but the above data helps show that The Hackett Group and Huron Consulting Group are likely undervalued currently. And when considering the strength of its earnings outlook, HCKT and HURN sticks out as one of the market's strongest value stocks.

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