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Insperity (NSP) Gains 14.4% in the Past 6 Months: Here's How
Insperity, Inc. (NSP - Free Report) shares have had an impressive run over the past six months. The stock gained 14.4% compared with 0.6% rise of the industry it belongs to.
Reasons for the Upside
Insperity puts consistent efforts to reward its shareholders. During 2021, the company repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million. During 2020, the company repurchased 1.4 million shares for $99.4 million and paid out dividends totaling $61.9 million. It repurchased 2.1 million shares for $203 million and paid out dividends totaling $48.6 million in 2019. Such moves indicate Insperity’s commitment toward boosting shareholders’ value and underlining its confidence in business.
Image Source: Zacks Investment Research
Insperity’s top-line growth is directly proportional to the rise in average number of worksite employees paid per month. In 2021, total revenues of $4.97 billion increased 16% year over year on the back of 8% increase in revenues per worksite employees and 7% increase in paid worksite employees. Average number of worksite employees paid per month was 250,745 at the end of 2021. Worksite employee growth is being driven by strength across sales, higher client retention and rise in net hiring of worksite employees by the company’s client base.
Strong Revenue Growth
Driven by the above tailwinds, the Zacks Consensus Estimate for 2023 revenues indicates an increase of 7.3% year over year to $6.39 billion.
Zacks Rank and Stocks to Consider
Insperity 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 Paychex, Inc. (PAYX - Free Report) and DocuSign, Inc. (DOCU - Free Report) .
Paychex carries a Zacks Rank #2 (Buy) at present. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 5.9%, on average.
DocuSign is currently Zacks #1 Ranked. DOCU has a long-term earnings growth expectation of 13.7%.
DOCU delivered a trailing four-quarter earnings surprise of 6.6%, on average.