1. Huron Consulting Group Inc. (NASDAQ:HURN)
Stock Upside: 98.51%
Market Capitalization: $1.72 billion
Number of Hedge Fund Holders: 24
Huron Consulting Group Inc. (NASDAQ:HURN) is one of the top small cap stocks with huge growth potential. On May 5, Huron Consulting Group Inc. (NASDAQ:HURN) reported its Q1 2026 financial results in which it delivered record revenue before RBR of $443.7 million. The revenue was up 12.1% year over year and exceeded the analyst consensus of $438.2 million. Of that growth, $19.3 million came from acquisitions completed in late 2024.
According to the report, the Healthcare segment carried much of the weight with $225.2 million in income, which the company measures as revenues before reimbursable expenses, or RBR. The RBR growth was possible because of strong client demand for performance improvement, revenue cycle management, financial advisory, and strategy services.
Adjusted EPS reached $1.73, well ahead of the $1.61 analyst consensus and up 3% year over year. The report also noted that adjusted EBITDA rose 21.9% to $50.6 million, which lifted the adjusted EBITDA margin to 11.4% of RBR from 10.5% a year ago. John Kelly, the CFO, said on the earnings call that this improvement came despite a higher effective tax rate. To him, this is evidence that the underlying earnings quality was stronger than the headline growth implies.
Kelly concluded his session of the earnings call by telling investors that management fully reaffirmed the company’s outlook. That means the expected RBR remains in the $1.78-$1.86 billion range, 14.5%-15.0% of RBR for adjusted EBITDA margin, and $8.35-$9.15 for adjusted EPS.
Huron Consulting Group Inc. (NASDAQ:HURN) is a professional services firm. It provides management consulting, advisory, and digital transformation solutions primarily to healthcare organizations, higher education institutions, and commercial businesses.
While we acknowledge the potential of HURN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HURN and that has 100x upside potential, check out our report about the cheapest AI stock.
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