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Reasons Why You Should Hold on to Insperity (NSP) Stock
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Insperity, Inc. (NSP - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth. The company has an expected long-term earnings per share (three to five years) growth rate of 15%.
The stock gained a whopping 121% in the past year, outperforming 90.3% growth of the industry it belongs to.
What’s Driving the Stock?
Insperity looks strong on the back of a growing professional employer organization or PEO industry which is currently being driven by growth of small and medium-sized businesses, increased need of providing employee benefits, and complex regulation of payroll, payroll tax and employment issues.
Insperity exited the December quarter with cash and equivalents of $635 million, above its total debt of $369 million. This indicates that the company has sufficient cash to meet its debt obligations. Moreover, the company does not have any current debt.
Insperity puts consistent efforts to reward its shareholders. During 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. It repurchased shares for $203 million, $113.3 million, $38.7 million and $31.7 million, and paid out dividends totaling $48.6 million, $33.4 million, $65.8 million and $20.6 million in 2019, 2018, 2017 and 2016, respectively. Such moves indicate Insperity’s commitment toward boosting shareholders’ value and underlining its confidence in business.
Some Risks
Insperity is seeing 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 remain under pressure going forward.
The company’s top line remained weak in 2020 due to fall in average number of worksite employees paid per month. In 2020, total revenues of $4.28 billion fell marginally year over year on the back of 0.6% decline in average number of worksite employees (WSEEs) paid per month.
Zacks Rank and Stocks to Consider
Insperity currently carries a Zacks Rank #3 (Hold).
The long-term expected earnings per share (three to five years) growth rate for Accenture, Cross Country Healthcare and Charles River is pegged at 10%, 8.7% and 13%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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Reasons Why You Should Hold on to Insperity (NSP) Stock
Insperity, Inc. (NSP - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth. The company has an expected long-term earnings per share (three to five years) growth rate of 15%.
The stock gained a whopping 121% in the past year, outperforming 90.3% growth of the industry it belongs to.
What’s Driving the Stock?
Insperity looks strong on the back of a growing professional employer organization or PEO industry which is currently being driven by growth of small and medium-sized businesses, increased need of providing employee benefits, and complex regulation of payroll, payroll tax and employment issues.
Insperity exited the December quarter with cash and equivalents of $635 million, above its total debt of $369 million. This indicates that the company has sufficient cash to meet its debt obligations. Moreover, the company does not have any current debt.
Insperity puts consistent efforts to reward its shareholders. During 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. It repurchased shares for $203 million, $113.3 million, $38.7 million and $31.7 million, and paid out dividends totaling $48.6 million, $33.4 million, $65.8 million and $20.6 million in 2019, 2018, 2017 and 2016, respectively. Such moves indicate Insperity’s commitment toward boosting shareholders’ value and underlining its confidence in business.
Some Risks
Insperity is seeing 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 remain under pressure going forward.
The company’s top line remained weak in 2020 due to fall in average number of worksite employees paid per month. In 2020, total revenues of $4.28 billion fell marginally year over year on the back of 0.6% decline in average number of worksite employees (WSEEs) paid per month.
Zacks Rank and Stocks to Consider
Insperity currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Accenture (ACN - Free Report) , Cross Country Healthcare (CCRN - Free Report) and Charles River Associates (CRAI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for Accenture, Cross Country Healthcare and Charles River is pegged at 10%, 8.7% and 13%, respectively.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>