Reasons to Retain Insperity (NSP) Stock in Your Portfolio

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Insperity, Inc. (NSP - Free Report) has had an impressive run on the bourse in the past year. The stock has gained 30.5% compared with 35.6% rally of the industry.

The company has an expected long-term (three to five years) earnings per share growth rate of 15%.

What’s Supporting the Rally?

Insperity exited the September quarter with cash and equivalents of $548 million, above the total debt of $369 million. This indicates that the company has sufficient cash to meet its debt obligations. Insperity does not have any current debt. It's total debt-to-total-capital ratio was 0.79 at the end of third-quarter 2021, lower than the previous quarter’s 0.81. Lower debt to capitalization ratio indicates that the proportion of debt to finance the company’s assets is declining and so is the risk of insolvency.

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

Hurdles to Counter

Insperity sees an increase in expenses as it continues to invest in growth, technology and product and service offerings. During 2020, adjusted operating expenses of $612.2 million increased 12.1% year over year. The same rose 10.7% year over year in 2019 and 12% in 2018. Hence, the bottom line is likely to be under pressure.

Zacks Rank and Stocks to Consider

Insperity currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budget has an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 580.3% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.

Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 190.6% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN flaunts a Zacks #1 Rank.

CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.

CRA International’s shares have surged 86.5% in the past year. CRA International has a long-term earnings growth of 15.5%. The stock carries a Zacks #2 (Buy) Rank.

 

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