4 Reasons to Add Insperity (NSP) Stock to Your Portfolio Now

ADP CRAI CAR NSP

Insperity, Inc. (NSP - Free Report) is a staffing services provider that has performed significantly well in the past three months and has the potential to sustain the momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes Insperity an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past three months. Shares of Insperity have appreciated 14.8% against the 0.5% decline of the Zacks S&P 500 composite.

Solid Rank & VGM Score: Insperity currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Three estimates for 2022 have moved north over the past 60 days versus no southward revision for Insperity, reflecting analysts’ confidence in the stock. During the same period, the Zacks Consensus Estimate for 2022 earnings has moved up 5.1%.

Growth Factors: Insperity’s business is currently benefiting from strength in the professional employer organization or the PEO industry. This strength is being driven by the growth of small and medium-sized businesses, increased need of providing employee benefits and workplace safety programs as well as the related expenses, time and knowledge required to attain the technology infrastructure to administer benefits, HR and payroll processing on an integrated basis.

Insperity puts consistent efforts to reward its shareholders. In 2021, the company repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million. In 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. It repurchased 2.1 million shares for $203 million and paid out dividends totaling $48.6 million in 2019. Such moves indicate Insperity’s commitment toward boosting shareholders’ value and underlining its business confidence.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Automatic Data Processing, Inc. (ADP - 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 109.1% for 2022.

Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.

ADP carries a Zacks Rank #2 at present. ADP has a long-term earnings growth expectation of 12%.

ADP delivered a trailing four-quarter earnings surprise of 5%, on average.

CRA International carries a Zacks Rank of 2, currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.

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