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Huron Consulting Group Inc. (HURN) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Huron Consulting (HURN)? Shares have been on the move with the stock up 18.6% over the past month. The stock hit a new 52-week high of $82.25 in the previous session. Huron Consulting has gained 12.3% since the start of the year compared to the 4.2% move for the Zacks Business Services sector and the 0% return for the Zacks Consulting Services industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 28, 2023, Huron Consulting reported EPS of $1.12 versus consensus estimate of $0.98 while it beat the consensus revenue estimate by 11.83%.

Valuation Metrics

Huron Consulting may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Huron Consulting has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 20.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.2X. On a trailing cash flow basis, the stock currently trades at 16.3X versus its peer group's average of 16.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Huron Consulting currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Huron Consulting passes the test. Thus, it seems as though Huron Consulting shares could still be poised for more gains ahead.

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