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Here's Why You Should Retain Robert Half (RHI) Stock For Now

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Robert Half International Inc. (RHI - Free Report) currently benefits from Protiviti and strong liquidity.

RHI has an expected long-term earnings per share (three to five years) growth rate of 9.5%. Further, earnings are anticipated to register growth of 19.4% and 7.4% in 2022 and 2023, respectively.

Factors That Augur Well

Robert Half’s current ratio (a measure of liquidity) stood at 2.29 at the end of first-quarter 2022, higher than the 1.67 recorded at the end of the prior quarter and the prior-year quarter’s 1.74. The gradually increasing current ratio bodes for Robert Half. A current ratio of more than 1.5 is usually considered suitable for a company. This may imply that the risk of default is less.

Protiviti, the company’s wholly-owned subsidiary through which it offers risk consulting, internal audit and information technology consulting services, is in great shape. Protiviti is focused on technology consulting, emphasizing on cloud computing, cybersecurity and digital transformation. It is strongly positioned in the market and is currently a double-digit margin and revenue performer.

A key Risk

Robert Half is witnessing increased expenses due to increased staff compensation costs and heavy investments in technology initiatives. Hence, the company's bottom line is likely to remain under pressure in the future.

RHI also operates in a highly-competitive market and faces tough competition in terms of price and reliability of service on a national, regional and local basis. In several areas, local companies are its strongest competitors.

In the past year, shares of RHI have declined 11.9% compared with the industry’s fall of 19.5%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank and Stocks to Consider

Robert Half currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Cross Country Healthcare (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%.  

Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.  

Cross Country Healthcare sports a Zacks Rank of 1 at present. CCRN has a long-term earnings growth expectation of 6.9%.

Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 29.2%, on average.  

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

CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.