A number of stocks jumped in the afternoon session after markets continued to rally as investor optimism grew for a potential Federal Reserve interest rate cut in September. This optimism was largely fueled by a recent consumer price index report that showed inflation easing, along with public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. The prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, as it can encourage companies to increase spending on consulting, IT projects, and staffing.
Professional services firm Huron Consulting Group (NASDAQ:HURN) missed Wall Street’s revenue expectations in Q2 CY2025, but sales rose 8.1% year on year to $411.8 million. On the other hand, the company’s full-year revenue guidance of $1.66 billion at the midpoint came in 2.2% above analysts’ estimates. Its non-GAAP profit of $1.89 per share was 5.4% above analysts’ consensus estimates.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Professional services firm Huron Consulting Group (NASDAQ:HURN) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 8.1% year on year to $411.8 million. On the other hand, the company’s full-year revenue guidance of $1.66 billion at the midpoint came in 2.2% above analysts’ estimates. Its non-GAAP profit of $1.89 per share was 5.4% above analysts’ consensus estimates.
Huron Consulting Group reported mixed Q2 2025 results, missing revenue estimates but beating EPS. The acquisition of Treliant aims to boost its financial services consulting capabilities.
Stocks that outperform the market usually share key traits such as rising sales, expanding margins, and increasing returns on capital.
The select few that can do all three for many years are often the ones that make you life-changing money.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Let’s dig into the relative performance of Huron (NASDAQ:HURN) and its peers as we unravel the now-completed Q1 business process outsourcing & consulting earnings season.
A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance.
Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Professional services firm Huron Consulting Group (NASDAQ:HURN) announced better-than-expected revenue in Q1 CY2025, with sales up 11.2% year on year to $404.1 million. The company expects the full year’s revenue to be around $1.62 billion, close to analysts’ estimates. Its non-GAAP profit of $1.68 per share was 45.7% above analysts’ consensus estimates.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Professional services firm Huron Consulting Group (NASDAQ:HURN) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 11.2% year on year to $404.1 million. The company expects the full year’s revenue to be around $1.62 billion, close to analysts’ estimates. Its non-GAAP profit of $1.68 per share was 45.3% above analysts’ consensus estimates.
Profitability is a key measure of business strength.
Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Genpact (NYSE:G) and its peers.
