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Bull of the Day: Kforce (KFRC)

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Key Takeaways

  • Kforce saw a bottom in its key Technology group in Q3 and momentum into Q4.
  • Earnings estimates have been revised higher on KFRC for 2025 and 2026.
  • Kforce is cheap, with a forward P/E of just 14.7. It also pays a dividend yielding 5%.

Kforce Inc. (KFRC - Free Report) has seen declining earnings for 3 years as the job market slowed. But is the worst over for this Zacks Rank #1 (Strong Buy)?

Kforce specializes in technology, finance and accounting and other professional staffing services. It curates teams of technical experts who deliver solutions custom-tailored to each client’s needs.

Every year, about 18,000 experts work with Fortune 500 and other leading companies.

Kforce Beat in the Third Quarter of 2025

On Nov 3, 2025, Kforce reported third quarter results and beat the Zacks Consensus by $0.06. Earnings were $0.63 versus the consensus of $0.57.

It was the first earnings surprise after two misses in a row.

Revenue decreased 5.9% year-over-year to $332.6 million. It also decreased 0.5% quarter-over-quarter.

However, while business has been tough the last several years, it saw better-than-expected results in both its Technology and Finance and Accounting businesses in the quarter.

Additionally, it appears that Technology may have bottomed, as consultants on assignment hit a low early in the third quarter and improved throughout the rest of the quarter.

The Finance and Accounting business also appears to have stabilized and grew 6.9% sequentially.

Analysts are Bullish on Kforce Heading Into 2026

Kforce said its momentum in the third quarter had carried over to the fourth quarter. Is the worst of the staffing slowdown over?

Two estimates have been revised higher for both 2025 and 2026 in the last 60 days.

The 2025 Zacks Consensus is now looking for $2.13 up from $2.06. That’s still a decline of 20.5% as the company made $2.68 last year.

It will be the third year in a row of an earnings decline.

However, 2026 finally turns the corner. The Zacks Consensus is looking for $2.28, which would be earnings growth of 7%.

2027 also looks bullish on the price and consensus chart.

Zacks Investment Research
Image Source: Zacks Investment Research

Is Kforce a Steal?

Shares of Kforce have tanked in 2025, hitting a new 5-year low.

Zacks Investment Research
Image Source: Zacks Investment Research

But is it now a deal?

Kforce trades with a forward price-to-earnings (P/E) of just 14.7. A P/E ratio under 15 usually indicates a company is a value.

It also has a price-to-sales (P/S) ratio of just 0.4. A P/S ratio under 1.0 can mean a stock is cheap. Investors are getting each $1 of sales for just $0.40.

Kforce is also shareholder friendly. In October, the Board expanded the stock repurchase plan to $100 million.

It also pays a dividend, currently paying $1.56 annually, which is yielding 5%.

The staffing industry has seen tough times in the last few years. It’s currently in the bottom 5% of all Zacks Rank industries.

But if you’re looking for a turnaround story in staffing, Kforce should be on your short list.


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