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Robert Half (RHI) Rides High on Skilled Services Demand
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Robert Half International Inc.(RHI - Free Report) has exhibited a bullish run on the index since the past six months. Specifically, shares of this global staffing firm have been trending higher since the company reported its third-quarter 2016 results. We note that in the said period the stock increased 23.7% in comparison to the Zacks categorized Business Services industry, which showcased growth of just 3.0%.
Let us delve deeper into the quarterly performance.
Robert Half reported better-than-expected third-quarter 2016 earnings on Oct 27. However, revenues lagged the Zacks Consensus Estimate marginally, possibly due to an uncertain macro-economic environment and market volatility. Third quarter earnings also declined on a year-over-year basis for the first time in 25 quarters. Despite higher demand for staffing services, earnings declined as the company’s clients took longer to make hiring decisions. Also, we note that the U.S. economy added fewer jobs in September than expected, which added to the concerns. Shrinking margins were further responsible for the earnings decline.
Nevertheless, the company has been witnessing rising demand for staffing services owing to an improving U.S. economic scenario as well as a growing labor market.
Robert Half International is the world's largest specialized provider of temporary and permanent personnel in the fields of accounting and finance. Robert Half's total revenue has been growing driven by broad-based revenue gains and higher demand for its professional staffing and consulting services, owing to improved labor markets, low unemployment in numerous professional occupations and improved economic backdrop in many of its non-U.S. markets. The company’s international operations also improved, particularly backed by higher demand for staffing and consulting services.
We note that the company has been investing heavily in technology staffing over the past few years. Its international operations have also improved in the recent quarters, particularly driven by higher demand for staffing and consulting services. With an improving economic picture, the company expects to generate accelerated global revenues in the near term. Also, U.S. health care reform and consumer protection regulations are fueling demand for the company’s services.
A VGM score of ‘A’, an attractive Zacks Rank #2 (Buy) and a long-term earnings growth rate of 15.5% also make the stock appealing.
Investors interested in the staffing industry can also consider other well-positioned stocks like Resources Connection, Inc. , Cross Country Healthcare, Inc. (CCRN - Free Report) and Staffing 360 Solutions, Inc. (STAF - Free Report) . While Resources Connection sports a Zacks Rank #1 (Strong Buy), both Cross Country and Staffing 360 hold a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare has delivered an average positive earnings surprise of 29.5% in the trailing four quarters, while Resources Connection and Staffing 360 have delivered an average negative surprise of 4.4% and 54.1%, respectively.
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Robert Half (RHI) Rides High on Skilled Services Demand
Robert Half International Inc.(RHI - Free Report) has exhibited a bullish run on the index since the past six months. Specifically, shares of this global staffing firm have been trending higher since the company reported its third-quarter 2016 results. We note that in the said period the stock increased 23.7% in comparison to the Zacks categorized Business Services industry, which showcased growth of just 3.0%.
Let us delve deeper into the quarterly performance.
Robert Half reported better-than-expected third-quarter 2016 earnings on Oct 27. However, revenues lagged the Zacks Consensus Estimate marginally, possibly due to an uncertain macro-economic environment and market volatility. Third quarter earnings also declined on a year-over-year basis for the first time in 25 quarters. Despite higher demand for staffing services, earnings declined as the company’s clients took longer to make hiring decisions. Also, we note that the U.S. economy added fewer jobs in September than expected, which added to the concerns. Shrinking margins were further responsible for the earnings decline.
Nevertheless, the company has been witnessing rising demand for staffing services owing to an improving U.S. economic scenario as well as a growing labor market.
Robert Half International is the world's largest specialized provider of temporary and permanent personnel in the fields of accounting and finance. Robert Half's total revenue has been growing driven by broad-based revenue gains and higher demand for its professional staffing and consulting services, owing to improved labor markets, low unemployment in numerous professional occupations and improved economic backdrop in many of its non-U.S. markets. The company’s international operations also improved, particularly backed by higher demand for staffing and consulting services.
We note that the company has been investing heavily in technology staffing over the past few years. Its international operations have also improved in the recent quarters, particularly driven by higher demand for staffing and consulting services. With an improving economic picture, the company expects to generate accelerated global revenues in the near term. Also, U.S. health care reform and consumer protection regulations are fueling demand for the company’s services.
A VGM score of ‘A’, an attractive Zacks Rank #2 (Buy) and a long-term earnings growth rate of 15.5% also make the stock appealing.
ROBT HALF INTL Price, Consensus and EPS Surprise
ROBT HALF INTL Price, Consensus and EPS Surprise | ROBT HALF INTL Quote
Other Stocks to Consider
Investors interested in the staffing industry can also consider other well-positioned stocks like Resources Connection, Inc. , Cross Country Healthcare, Inc. (CCRN - Free Report) and Staffing 360 Solutions, Inc. (STAF - Free Report) . While Resources Connection sports a Zacks Rank #1 (Strong Buy), both Cross Country and Staffing 360 hold a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare has delivered an average positive earnings surprise of 29.5% in the trailing four quarters, while Resources Connection and Staffing 360 have delivered an average negative surprise of 4.4% and 54.1%, respectively.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>