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5 Reasons to Add Insperity Stock (NSP) to Your Portfolio Right Now

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Insperity, Inc. (NSP - Free Report) is a staffing services provider that has performed significantly well in the past year and has the potential to sustain the momentum in the near term. Consequently, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.

What Makes Insperity an Attractive Pick?

An Outperformer: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Shares of Insperity have appreciated a massive 71%, significantly outperforming the 37% rally of the Zacks S&P 500 composite.

Solid Rank: Insperity currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Two estimates for 2021 have moved north over the past 60 days versus no southward revision for Insperity, reflecting analysts’ confidence in the stock. During the same period, the Zacks Consensus Estimate for 2021 earnings has moved up 5.4%.

Positive Earnings Surprise History: Insperity has an impressive earnings surprise history. The company outpaced the consensus mark in all of the trailing four quarters, delivering an average beat of 54.5%.

Growth Factors: Insperity’s business is currently benefiting from strength in the professional employer organization or the PEO industry. This strength is being driven by growth of the small- and medium-sized businesses, increased need of providing employee benefits and workplace safety programs as well as the related expenses, time and knowledge required to attain the technology infrastructure to administer benefits, HR and payroll processing on an integrated basis.

Insperity puts in continued efforts to reward its shareholders. During 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. It repurchased shares for $203 million, $113.3 million, $38.7 million and $31.7 million, and paid out dividends totaling $48.6 million, $33.4 million, $65.8 million and $20.6 million in 2019, 2018, 2017 and 2016, respectively. Such moves indicate Insperity’s commitment toward boosting shareholder value, thus underlining the company’s confidence in its business.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector include ManpowerGroup (MAN - Free Report) , Equifax (EFX - Free Report)  and Genpact (G - Free Report) , each carrying a Zacks Rank #2.

The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Equifax and Genpact is pegged at 24.2%, 15.2% and 14.7%, respectively.

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