We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Insperity (NSP) Stock Gained 19.9% in the Past 3 Months?
Read MoreHide Full Article
Shares of Insperity, Inc. (NSP - Free Report) have rallied 19.9% in the past three-month period, primarily on solid top-line growth and investor-friendly steps.
Image Source: Zacks Investment Research
Reasons for Upside
Insperity’s top-line growth is directly proportional to the rise in the average number of worksite employees paid per month. Revenues of $1.43 billion for second-quarter 2022 increased 20.2% year over year. The upside was backed by a 1.2% increase in revenues per worksite employee (WSEE) and a 19.4% increase in paid worksite employees.
In 2021, total revenues of $4.97 billion increased 16% year over year on the back of an 8% increase in revenues per worksite employees and a 7% increase in paid worksite employees. Average number of worksite employees paid per month were 250,745 at the end of 2021. Worksite employee growth is being driven by strength across sales, higher client retention and a rise in net hiring of worksite employees by Insperity’s client base.
Insperity makes consistent efforts to reward its shareholders. In 2021, NSP repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million. During 2020, NSP repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. It bought back 2.1 million shares for $203 million and paid out dividends worth $48.6 million in 2019. Such moves underpin NSP’s commitment to boosting shareholder value and reinforcing its confidence in business.
Favorable Estimate Revision
Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has moved 5.1% north to $4.95 in the past 60 days.
Investors interested in the broader Zacks Business Services sector can also consider a few other top-ranked stocks like Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has an earnings growth rate of 108.4% for 2022.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank #2 at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
CRA International carries a Zacks Rank of 2, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Why Insperity (NSP) Stock Gained 19.9% in the Past 3 Months?
Shares of Insperity, Inc. (NSP - Free Report) have rallied 19.9% in the past three-month period, primarily on solid top-line growth and investor-friendly steps.
Image Source: Zacks Investment Research
Reasons for Upside
Insperity’s top-line growth is directly proportional to the rise in the average number of worksite employees paid per month. Revenues of $1.43 billion for second-quarter 2022 increased 20.2% year over year. The upside was backed by a 1.2% increase in revenues per worksite employee (WSEE) and a 19.4% increase in paid worksite employees.
In 2021, total revenues of $4.97 billion increased 16% year over year on the back of an 8% increase in revenues per worksite employees and a 7% increase in paid worksite employees. Average number of worksite employees paid per month were 250,745 at the end of 2021. Worksite employee growth is being driven by strength across sales, higher client retention and a rise in net hiring of worksite employees by Insperity’s client base.
Insperity makes consistent efforts to reward its shareholders. In 2021, NSP repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million. During 2020, NSP repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. It bought back 2.1 million shares for $203 million and paid out dividends worth $48.6 million in 2019. Such moves underpin NSP’s commitment to boosting shareholder value and reinforcing its confidence in business.
Favorable Estimate Revision
Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has moved 5.1% north to $4.95 in the past 60 days.
Zacks Rank and Other Stocks to Consider
Insperity currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the broader Zacks Business Services sector can also consider a few other top-ranked stocks like Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has an earnings growth rate of 108.4% for 2022.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank #2 at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
CRA International carries a Zacks Rank of 2, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.