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The Zacks Analyst Blog Highlights: KornFerry, Kforce, Robert Half International and Cross Country Healthcare

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For Immediate Release

Chicago, IL – December 14, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: KornFerry International (KFY - Free Report) , Kforce Inc. (KFRC - Free Report) , Robert Half International Inc. (RHI - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .

Here are highlights from Monday’s Analyst Blog:

4 Staffing Stocks to Buy in a Challenging Industry

Job openings are at a record high, but companies are struggling to hire. As the economy is reopening, industries are getting back to functioning at the optimum level, which has reopened millions of vacancies. Hiring has been a problem lately, although it rebounded in October.

Given the demand for workers, companies will be looking to staffing firms for large-scale hiring. This is likely to benefit companies like KornFerryKforceRobert Half International and Cross Country Healthcare in the near term.

Job Openings Surge  

The Labor Department said on Dec 8 that job openings surged in October. According to the department’s Job Openings and Labor Turnover Survey, or JOLTS report, job openings jumped a whopping 431,000 to 11 million in October. This came in above economists’ expectations of 10.4 million and is the second-highest on record.

The maximum job openings are now in the accommodation and food services industry, where vacancies have increased by 254,000.

Besides, 45,000 job openings were created in the nondurable goods manufacturing industry, while vacancies jumped 42,000 in the educational services sector. Overall, the job openings rate jumped to 6.9% in October from 6.7% in the previous month. However, what has been worrying employers is the decline in hiring as they struggle to find new workers.

Struggle with Hiring

The Jolts report states that job openings declined by 115,000 in state and local governments, excluding education in October.The report comes days after it was reported that job hiring fell in November. The United States added a meager 210,000 jobs in November, although hiring had picked up in the prior month.

Job additions were the strongest in the professional and business services sector and the transportation industry but other sectors have struggled to hire. With millions now vaccinated, people are more confident now. This has seen employers ramp up hiring but somehow, there is an acute labor shortage.

The employment level had reached its highest levels before the pandemic. Then, the COVID-19 outbreak saw millions losing jobs and others getting furloughed. This labor shortage has continued, although the unemployment rate has once again hit a low.

The Labor Department said on Dec 9 that the unemployment level hit a 52-year low, with jobless claims declining by 43,000 to 184,000 last week. This, along with record-high job openings, has put the spotlight on the staffing firms.

Our Choices

Given this situation, it makes for an ideal opportunity to invest in staffing stocks. We have handpicked four such sticks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).

KornFerry International is the world's leading and largest executive recruitment firm with the broadest global presence in the executive recruitment industry. KFY provides executive recruitment services exclusively on a retained basis and serves the global recruitment needs of our clients from middle-to-executive management. KornFerry’s clients are many of the world's largest public and private companies, middle-market and emerging growth companies as well as governmental and not-for-profit organizations.

KornFerry’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 13.5% over the past 60 days. Shares of KFY have gained 6.7% in the past three months. KornFerry carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Robert Half International Inc. is one of the world's largest providers of professional consulting and staffing services. RHI’s specialized staffing divisions include Accountemps, Robert Half Finance & Accounting and Robert Half Management Resources — for temporary, full-time and senior-level project professionals, respectively. Robert Half International has staffing and consulting operations in more than 400 locations across the globe.

Robert Half International’s expected earnings growth rate for the current year is 95.9%. The Zacks Consensus Estimate for current-year earnings improved 5.4% over the past 60 days. Shares of RHI have gained 6.7% in the past three months. Robert Half International has a Zacks Rank #1.

Cross Country Healthcare, Inc. is a national leader in providing innovative healthcare workforce solutions and staffing services. CCRN’s diverse client base includes both clinical and nonclinical settings, servicing acute care hospitals, physician practice groups, outpatient and ambulatory-care centers, nursing facilities, both public schools and charter schools, rehabilitation and sports medicine clinics, government facilities, and homecare. Cross Country Healthcare is able to place clinicians on travel and per diem assignments, local short-term contracts and permanent positions.

Cross Country Healthcare’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 73.6% over the past 60 days. Cross Country Healthcare has a Zacks Rank #2 (Buy).

Kforce is a full-service, web-based specialty staffing firm. KFRC provides flexible and permanent staffing solutions for organizations and career management for individuals in the specialty skill areas of information technology, finance & accounting, human resources, engineering, pharmaceutical, health care, legal, e-solutions consulting, scientific and insurance and investments. KForce’s online portal, kforce.com, offers web-based services, including online resumes and job postings, interactive interviews and job placements and career management strategies.

The company’s expected earnings growth rate for the current year is 35.5%. The Zacks Consensus Estimate for current-year earnings improved 10.3% over the past 60 days. Shares of KFRC have advanced 22.4% in the past three months. Kforce sports a Zacks Rank #1.

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