Huron Consulting Group ($HURN)
Price: $145.00 | Date: March 26, 2025
Quick Take
Huron Consulting stands out as a digital transformation leader helping hospitals and universities modernize their operations. The company has emerged as one of the market’s top performers. Their exceptional 10.9% operating margin (compared to industry average of -4%) demonstrates superior execution in the competitive consulting space.
What makes Huron particularly compelling is their dominant position in two growing sectors: they serve 63 of the top 100 hospitals and partner with 215 major universities. Their recent strategic acquisitions in digital capabilities and impressive 84% client retention rate showcase their strong market position.
The company’s growth trajectory is impressive, with 96.4% earnings growth over the past year and a clear path to potentially double earnings per share by 2029. Their expanding digital transformation capabilities position them perfectly to capture growing demand in healthcare and education sectors.
Note: This report is for informational purposes only and does not constitute financial advice. Always conduct your own due diligence before making investment decisions.
Stock Performance
HURN has demonstrated remarkable momentum with a 218.2% gain over three years. The stock is currently consolidating after reaching a 52-week high of $153.85, showing resilience at current levels despite a minor -4% pullback last week. Technical indicators suggest continued institutional accumulation, with the stock trading above major moving averages and showing healthy consolidation patterns.
Why It Made the Cut
Huron stands out for several compelling reasons:
- Exceptional Profitability: 10.9% operating margin vs -4% industry average
- Superior Returns: 21.3% ROE and 14.5% ROI, far exceeding industry averages
- Strong Growth: 96.4% EPS growth and 8.8% revenue growth, both significantly above peers
- Market Leadership: Serves 76% of Fortune 500 companies with 84% client retention
Note: These highlights represent just a fraction of our comprehensive analysis, as each stock undergoes rigorous evaluation across 50+ data points using our proprietary screening process before making it into your bi-weekly report.
Business Overview
Huron helps organizations solve complex challenges through three main service lines:
- Healthcare Consulting (50% of revenue): Helps hospitals improve operations, implement technology, and enhance patient care
- Education Solutions (32% of revenue): Assists universities with modernization, technology implementation, and operational efficiency
- Commercial Advisory (18% of revenue): Provides digital transformation and strategic services to businesses
Their recent acquisitions of AXIA Consulting and GG+A demonstrate a focused strategy of expanding digital capabilities while deepening expertise in core markets. Their 84% client retention rate and strong partnerships with technology leaders like Oracle, Workday, and Salesforce showcase their market strength.
Market Opportunity
Huron operates in rapidly expanding markets with significant growth potential:
The healthcare consulting market is projected to reach $74.1 billion by 2034, growing at 8.2% annually. Digital transformation needs in healthcare, driven by telemedicine adoption and operational efficiency requirements, create substantial opportunities for Huron’s services.
The education consulting market is expected to add $792.2 million in growth through 2029, expanding at 5.7% annually. Universities face increasing pressure to modernize operations and enhance digital capabilities, perfectly aligning with Huron’s expertise.
Their commercial advisory segment targets the growing digital transformation market, where they’ve established strong partnerships with leading technology providers and serve 76% of Fortune 500 companies.
Financial Analysis
Huron’s financial performance demonstrates exceptional strength:
- Revenue Growth: 8.80% TTM, significantly above industry average
- Operating Margin: 10.90%, outperforming industry average of -3.96%
- Return on Equity: 21.32%, exceeding industry average of 7.45%
- Strong Balance Sheet: 1.21 current ratio with manageable leverage
Risk Assessment
Key risks to consider include:
- Sector Concentration: Heavy reliance on healthcare (50%) and education (32%) sectors
- Integration Risk: Recent acquisitions require successful execution
- Competitive Pressure: Increasing competition from both large consulting firms and specialized boutiques
- Insider Activity: Recent pattern of insider selling (22 sales vs 4 purchases)
Bottom Line
Huron Consulting Group presents a compelling investment opportunity backed by exceptional execution and strong market positioning. Their leadership in digital transformation for healthcare and education, combined with impressive financial metrics and clear growth strategy, suggests significant potential for continued appreciation.
The company’s impressive 96.4% earnings growth, superior margins, and strong market position provide a solid foundation for their ambitious goal of doubling adjusted EPS by 2029. While sector concentration and integration risks warrant monitoring, Huron’s strong execution track record and growing market opportunities make it an attractive option for growth-focused investors.