Back to top

Analyst Blog

On January 3, 2013, Zacks Investment Research upgraded Barrett Business Services Inc. (BBSI - Snapshot Report) to a Zacks #1 Rank (Strong Buy).

With a solid return of 99.8% over the past year and positive estimate revisions, this provider of business management solutions is an attractive investment opportunity.

Why the Upgrade?

An upbeat third quarter 2012 and increase in dividend per share have contributed to the upgrade.

After delivering solid third quarter results, Barrett announced an 18.0% increase in its dividend (from 11 cents per share to 13 cents). The increase was the reflection of the company’s strength in earnings and cash flow generation.

Barrett reported third quarter earnings per share of 81 cents, ahead of the Zacks Consensus Estimate of 71 cents and up 50% from the year-ago quarter.

Revenues grew 30% year over year to $111.1 million, driven by strong growth in Professional Employer Organization (PEO) client count and strong same-store sales growth. The company’s professional employer services and staffing services business segments reported revenue growth of 40.5% and 4.6%, respectively.

Management acknowledged the solid client base and asserted that client retention was strong.

Each of the 2 estimates for 2012 and 2013 were raised over the last 60 days.

Despite the positive estimate revisions, the Zacks Consensus Estimate for 2012 remained unchanged at $1.67 with the Zacks Consensus Estimate for 2013 moving up 4 cents (1.9%) to $2.17.

Barrett has the potential to post a positive earnings surprise in the upcoming quarter. For the past four quarters, the company has posted an average surprise of 10.5%.

Other Stocks to Consider:

Business management solutions providers Broadridge Financial Solutions Inc. (BR - Snapshot Report) and StarTek Inc. (SRT - Snapshot Report) also have a Zacks #1 Rank (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.84 +8.03%
BANCO DO BR… BDORY 14.74 +5.66%
EQT MIDSTRE… EQM 98.12 +3.36%
AIR INDUSTR… AIRI 9.90 +3.23%
WEATHERFORD… WFT 23.65 +3.14%