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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 benefiting from its wholly-owned subsidiary, Protiviti, as well as software initiatives.

RHI has a long-term (three to five years) expected earnings growth rate of 5.7%.

Factors That Augur Well

Protiviti, the company’s wholly-owned subsidiary through which it offers risk consulting, internal audit and information technology consulting services, is in great shape. It is increasingly focusing on technology consulting with additional emphasis on cloud computing, cybersecurity and digital transformation.

Protiviti is strongly positioned in the market, and currently a double-digit margin and revenue performer. For the fourth quarter, Protiviti revenues were $499 million, up 4% year over year on an as-adjusted basis.

Robert Half has been utilizing a major share of its capital expenditure on investments in software initiatives and technology infrastructure. Major software initiatives include upgrades to enterprise resource planning applications, and the implementation of a global, cloud-based customer relationship management application.

Further, the company continues to invest in digital technology initiatives designed to enhance the service offerings to both clients and candidates. Technology investments, a broad and deep client, as well as candidate database, and network scope and global scale are likely to drive long-term growth for the company.

Some Risks

Robert Half’s current ratio (a measure of liquidity) was 1.38 at the end of fourth-quarter 2022, lower than 1.82 at the prior-quarter end and the prior-year quarter’s 1.67. The gradually decreasing current ratio does not bode well for Robert Half.  

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 Avis Budget Group, Inc. (CAR - Free Report) and ICF International, Inc. (ICFI - Free Report) .

Avis Budget currently carries a Zacks Rank #2 (Buy). CAR has a VGM score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best investment opportunities.

CAR delivered a trailing four-quarter earnings surprise of 78%, on average.

ICF International sports a Zacks Rank #1 at present. ICFI’s 2023 revenues and earnings are expected to surge 10.4% and 6.4% year over year, respectively.

ICF International delivered a trailing four-quarter earnings surprise of 9.2%, on average.

See More Zacks Research for These Tickers

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Avis Budget Group, Inc. (CAR) - free report >>

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ICF International, Inc. (ICFI) - free report >>

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