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Here's Why Investors Should Buy Robert Half (RHI) Stock Now
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Robert Half International Inc. (RHI - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 74.1% in the past year compared with 67.9% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Robert Half 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. Thus, the stock seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 22% in the past 60 days.
Positive Earnings Surprise History: Robert Half has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 18.7%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at $4.16, which suggests year-over-year growth of 54.1%. Moreover, earnings are expected to register 9.7% growth in 2022. The stock’s long-term expected earnings per share (EPS) growth rate is pegged at 15.5%.
Driving Factors: Robert Half has a strong balance sheet. The company had no debt at the end of the first-quarter 2021 against a cash and cash equivalent balance of $498 million.
The company has been utilizing a major share of its capital expenditures on investments in software initiatives and technology infrastructure. Major software initiatives include upgrades to enterprise resource planning applications and the implementation of a global, cloud-based customer relationship management application.
Protiviti, the company’s wholly-owned subsidiary, through which it offers risk consulting, internal audit and information technology consulting services, is in great shape. In the first quarter of 2021, Protiviti revenues of $397 million increased 35% year over year. Adjusted gross margin of 26.9% improved 60 basis points year over year. Protiviti is increasingly focusing on technology consulting, with additional emphasis on cloud computing, cybersecurity and digital transformation.
Other Stocks to Consider
Investors interested in the broader Zacks Business Services sector can also consider stocks like Equifax Inc. (EFX - Free Report) , CRA International, Inc. (CRAI - Free Report) and Cross Country Healthcare (CCRN - Free Report) , all carrying a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Equifax, CRA International and Cross Country Healthcare is pegged at 14%, 15.5% and 10.5%, respectively.
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Here's Why Investors Should Buy Robert Half (RHI) Stock Now
Robert Half International Inc. (RHI - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 74.1% in the past year compared with 67.9% rise of the industry it belongs to.
Solid Rank & VGM Score: Robert Half 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. Thus, the stock seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 22% in the past 60 days.
Positive Earnings Surprise History: Robert Half has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 18.7%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at $4.16, which suggests year-over-year growth of 54.1%. Moreover, earnings are expected to register 9.7% growth in 2022. The stock’s long-term expected earnings per share (EPS) growth rate is pegged at 15.5%.
Driving Factors: Robert Half has a strong balance sheet. The company had no debt at the end of the first-quarter 2021 against a cash and cash equivalent balance of $498 million.
The company has been utilizing a major share of its capital expenditures on investments in software initiatives and technology infrastructure. Major software initiatives include upgrades to enterprise resource planning applications and the implementation of a global, cloud-based customer relationship management application.
Protiviti, the company’s wholly-owned subsidiary, through which it offers risk consulting, internal audit and information technology consulting services, is in great shape. In the first quarter of 2021, Protiviti revenues of $397 million increased 35% year over year. Adjusted gross margin of 26.9% improved 60 basis points year over year. Protiviti is increasingly focusing on technology consulting, with additional emphasis on cloud computing, cybersecurity and digital transformation.
Other Stocks to Consider
Investors interested in the broader Zacks Business Services sector can also consider stocks like Equifax Inc. (EFX - Free Report) , CRA International, Inc. (CRAI - Free Report) and Cross Country Healthcare (CCRN - Free Report) , all carrying a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Equifax, CRA International and Cross Country Healthcare is pegged at 14%, 15.5% and 10.5%, respectively.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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