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Here's Why You Should Retain Insperity (NSP) Stock Now
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Insperity, Inc. (NSP - Free Report) currently benefits from solid top-line growth and investor-friendly efforts. However, decreasing current ratio (a measure of liquidity) is a headwind.
NSP’s earnings are anticipated to grow 25.3% and 6.3% in 2022 and 2023, respectively. NSP has a long-term earnings growth expectation of 15%.
Shares of NSP have inched up 3.2% in the past year against a 17.3% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Insperity’s top-line growth is directly proportional to the rise in the average number of worksite employees paid per month. In 2021, total revenues of $4.97 billion increased 16% year over year on the back of an 8% increase in revenues per worksite employees and a 7% increase in paid worksite employees. Average number of worksite employees paid per month was 250,745 at the end of 2021. Worksite employee growth is being driven by strength across sales, higher client retention and a rise in net hiring of worksite employees by NSP’s client base.
Insperity makes consistent efforts to reward its shareholders. In 2021, NSP repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million. During 2020, NSP repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. NSP bought back 2.1 million shares for $203 million and paid out dividends totaling $48.6 million in 2019. Such moves indicate NSP’s commitment to boosting its shareholder value and its confidence in its business.
A Key Risk
NSP's current ratio at the end of second-quarter 2022 was pegged at 1.13, lower than the current ratio of 1.20 reported at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that Insperity may have problems meeting its short-term debt obligations.
Image: Bigstock
Here's Why You Should Retain Insperity (NSP) Stock Now
Insperity, Inc. (NSP - Free Report) currently benefits from solid top-line growth and investor-friendly efforts. However, decreasing current ratio (a measure of liquidity) is a headwind.
NSP’s earnings are anticipated to grow 25.3% and 6.3% in 2022 and 2023, respectively. NSP has a long-term earnings growth expectation of 15%.
Shares of NSP have inched up 3.2% in the past year against a 17.3% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Factors That Augur Well
Insperity’s top-line growth is directly proportional to the rise in the average number of worksite employees paid per month. In 2021, total revenues of $4.97 billion increased 16% year over year on the back of an 8% increase in revenues per worksite employees and a 7% increase in paid worksite employees. Average number of worksite employees paid per month was 250,745 at the end of 2021. Worksite employee growth is being driven by strength across sales, higher client retention and a rise in net hiring of worksite employees by NSP’s client base.
Insperity makes consistent efforts to reward its shareholders. In 2021, NSP repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million. During 2020, NSP repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. NSP bought back 2.1 million shares for $203 million and paid out dividends totaling $48.6 million in 2019. Such moves indicate NSP’s commitment to boosting its shareholder value and its confidence in its business.
A Key Risk
NSP's current ratio at the end of second-quarter 2022 was pegged at 1.13, lower than the current ratio of 1.20 reported at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that Insperity may have problems meeting its short-term debt obligations.
Zacks Rank and Stocks to Consider
Insperity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 at present. CAR has an earnings growth rate of 108.4% for 2022.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
CRA International flaunts a Zacks Rank of 1, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.