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Here's Why Investors Should Hold Robert Half (RHI) Stock Now
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Robert Half International Inc. (RHI - Free Report) is currently benefiting from strong liquidity, investor-friendly steps and its wholly-owned subsidiary Protiviti.
RHI earnings and revenues are anticipated to grow 12.1% and 12.3%, respectively, in 2022. RHI has a long-term earnings growth expectation of 2.2%.
Factors That Augur Well
Robert Half’s current ratio (a measure of liquidity) was 1.82 at the end of third-quarter 2022, higher than 1.79 recorded at the end of the prior quarter and the prior-year quarter’s 1.67. The gradually increasing current ratio bodes well for Robert Half. Moreover, a current ratio of more than 1.5 is usually considered good for a company. This may imply that the risk of default is less.
Robert Half offers risk consulting, internal audit and information technology consulting services through its wholly-owned subsidiary Protiviti, currently in great shape and firmly positioned in the market. For third-quarter 2022, Protiviti’s revenues came in at $511 million, up 5% year over year on an as-adjusted basis.
The U.S. Protiviti revenues of $416 million increased 4% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $95 million rose 7% year over year on an as-adjusted basis.
Commitment to shareholder returns prompts Robert Half a reliable way for investors to compound wealth over the long term. In 2021, RHI paid out $170.6 million of dividends and repurchased shares worth $287.7 million. In 2020, Robert Half paid out $155.9 million of dividends and repurchased shares worth $159.1 million. Such shareholder-friendly initiatives not only instill investors’ confidence in the stock but also positively impact a company's earnings per share.
A Key Risk
Robert Half is witnessing an increase in expenses due to the rise in staff compensation costs and heavy investments in technology initiatives. Hence, RHI's bottom line is likely to remain under pressure going forward.
Some better-ranked stocks in the broader Zacks Business Services sector are Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.
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Here's Why Investors Should Hold Robert Half (RHI) Stock Now
Robert Half International Inc. (RHI - Free Report) is currently benefiting from strong liquidity, investor-friendly steps and its wholly-owned subsidiary Protiviti.
RHI earnings and revenues are anticipated to grow 12.1% and 12.3%, respectively, in 2022. RHI has a long-term earnings growth expectation of 2.2%.
Factors That Augur Well
Robert Half’s current ratio (a measure of liquidity) was 1.82 at the end of third-quarter 2022, higher than 1.79 recorded at the end of the prior quarter and the prior-year quarter’s 1.67. The gradually increasing current ratio bodes well for Robert Half. Moreover, a current ratio of more than 1.5 is usually considered good for a company. This may imply that the risk of default is less.
Robert Half offers risk consulting, internal audit and information technology consulting services through its wholly-owned subsidiary Protiviti, currently in great shape and firmly positioned in the market. For third-quarter 2022, Protiviti’s revenues came in at $511 million, up 5% year over year on an as-adjusted basis.
The U.S. Protiviti revenues of $416 million increased 4% year over year on an adjusted basis. Non-U.S. Protiviti revenues of $95 million rose 7% year over year on an as-adjusted basis.
Commitment to shareholder returns prompts Robert Half a reliable way for investors to compound wealth over the long term. In 2021, RHI paid out $170.6 million of dividends and repurchased shares worth $287.7 million. In 2020, Robert Half paid out $155.9 million of dividends and repurchased shares worth $159.1 million. Such shareholder-friendly initiatives not only instill investors’ confidence in the stock but also positively impact a company's earnings per share.
A Key Risk
Robert Half is witnessing an increase in expenses due to the rise in staff compensation costs and heavy investments in technology initiatives. Hence, RHI's bottom line is likely to remain under pressure going forward.
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 Booz Allen Hamilton Holding Corporation (BAH - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .
Booz Allen carries a Zacks Rank #2 (Buy) at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.