Over the past six months, Huron’s shares (currently trading at $120.54) have posted a disappointing 18.4% loss, well below the S&P 500’s 2.5% gain. This may have investors wondering how to approach the situation.
Following the drawdown, is now a good time to buy HURN? Find out in our full research report, it’s free.
Why Are We Positive On HURN?
Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ: HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.
1. Skyrocketing Revenue Shows Strong Momentum
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Huron’s 14.3% annualized revenue growth over the last five years was exceptional. Its growth beat the average business services company and shows its offerings resonate with customers.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Huron’s EPS grew at 29.4% compounded annual growth rate over the last five years, higher than its 14.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Increasing Free Cash Flow Margin Juices Financials
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Huron’s margin expanded by 9.3 percentage points over the last five years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Huron’s free cash flow margin for the trailing 12 months was 9.6%.
Final Judgment
These are just a few reasons why Huron is a cream-of-the-crop business services company. After the recent drawdown, the stock trades at 14.1× forward P/E (or $120.54 per share). Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More Than Huron
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
