The labor market has experienced an unprecedented ride over the past eighteen months. Over 22 million jobs were lost between March and April of 2020 when the country was shutdown due to the pandemic. As we can see below, just a year and a half later more than 18 million jobs have been added back - including over 500,000 this past October.
Today’s ADP private payroll report showed the U.S. economy added 534,000 jobs in November. The official non-farm payrolls report from the Bureau of Labor Statistics is due out later this week on Friday.
While the jobs recovery has been one of the strongest in history, keen investors will note that this still leaves more than 4 million jobs (excluding the upcoming November report) just to get back to pre-pandemic levels.
We can view the unemployment rate as another confirmation indicator. After skyrocketing to 14.7% in April of last year, the unemployment rate has plunged back down to its lowest level since the start of the pandemic, hitting 4.6% in October.
People are clearly going back to work. Investors should also note the steep drop in initial claims for unemployment benefits, which have declined 97% from their peak last year.
These graphs paint a pretty picture for the employment narrative. But a nationwide labor shortage is making it more difficult for companies to locate and hire top talent. A recent study performed in August of this year by the Society for Human Resource Management (SHRM) found that nearly 90% of the 1,200 U.S. employers surveyed said they were struggling to fill open positions over the summer.
As investors it is our job to decipher these types of economic trends and determine how we can best take advantage via the equity markets. In this case, the staffing and recruiting space has witnessed a drastic increase in revenues as firms that are hiring are relying upon staffing firms more heavily than ever before.
The Zacks Staffing Firms industry group contains many recruitment firms and is currently ranked in the top 9% out of all 254 groups. This industry group has handily outperformed the market this year with a 43.9% return. Historical research has shown that nearly half of a stock’s future price appreciation can be attributed to its industry grouping.
Targeting firms in top industry groups will help guide you to individual stocks that are outperforming. Let’s take a look at three Zacks #1 ranked (Strong Buy) stocks that are within the Staffing Firms industry group and are benefitting from the recruiting boom.
Robert Half International, Inc. (RHI - Free Report)
Robert Half International is a provider of specialized staffing and risk consulting services, assisting clients and job candidates in their recruitment and employment needs. The company was founded in 1948 and is headquartered in Menlo Park, CA.
RHI is taking advantage of strength in Protiviti, its subsidiary through which it offers risk consulting, internal auditing and information technology consulting services. Protiviti is currently producing double-digit growth in margins and revenue.
RHI has illustrated a remarkable history of earnings surprises, beating estimates in each of the last six quarters. The company last reported EPS of $1.53 for the quarter ending in September, a 9.3% surprise over consensus. Over the last four quarters, RHI has delivered an average earnings surprise of 20.5%, which has helped the stock advance over 80% on the year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The labor market has experienced an unprecedented ride over the past eighteen months. Over 22 million jobs were lost between March and April of 2020 when the country was shutdown due to the pandemic. As we can see below, just a year and a half later more than 18 million jobs have been added back - including over 500,000 this past October.
Today’s ADP private payroll report showed the U.S. economy added 534,000 jobs in November. The official non-farm payrolls report from the Bureau of Labor Statistics is due out later this week on Friday.
While the jobs recovery has been one of the strongest in history, keen investors will note that this still leaves more than 4 million jobs (excluding the upcoming November report) just to get back to pre-pandemic levels.
We can view the unemployment rate as another confirmation indicator. After skyrocketing to 14.7% in April of last year, the unemployment rate has plunged back down to its lowest level since the start of the pandemic, hitting 4.6% in October.
People are clearly going back to work. Investors should also note the steep drop in initial claims for unemployment benefits, which have declined 97% from their peak last year.
These graphs paint a pretty picture for the employment narrative. But a nationwide labor shortage is making it more difficult for companies to locate and hire top talent. A recent study performed in August of this year by the Society for Human Resource Management (SHRM) found that nearly 90% of the 1,200 U.S. employers surveyed said they were struggling to fill open positions over the summer.
As investors it is our job to decipher these types of economic trends and determine how we can best take advantage via the equity markets. In this case, the staffing and recruiting space has witnessed a drastic increase in revenues as firms that are hiring are relying upon staffing firms more heavily than ever before.
The Zacks Staffing Firms industry group contains many recruitment firms and is currently ranked in the top 9% out of all 254 groups. This industry group has handily outperformed the market this year with a 43.9% return. Historical research has shown that nearly half of a stock’s future price appreciation can be attributed to its industry grouping.
Targeting firms in top industry groups will help guide you to individual stocks that are outperforming. Let’s take a look at three Zacks #1 ranked (Strong Buy) stocks that are within the Staffing Firms industry group and are benefitting from the recruiting boom.
Robert Half International, Inc. (RHI - Free Report)
Robert Half International is a provider of specialized staffing and risk consulting services, assisting clients and job candidates in their recruitment and employment needs. The company was founded in 1948 and is headquartered in Menlo Park, CA.
RHI is taking advantage of strength in Protiviti, its subsidiary through which it offers risk consulting, internal auditing and information technology consulting services. Protiviti is currently producing double-digit growth in margins and revenue.
RHI has illustrated a remarkable history of earnings surprises, beating estimates in each of the last six quarters. The company last reported EPS of $1.53 for the quarter ending in September, a 9.3% surprise over consensus. Over the last four quarters, RHI has delivered an average earnings surprise of 20.5%, which has helped the stock advance over 80% on the year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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