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.
4 Staffing Stocks to Watch on Robust April Job Additions
Read MoreHide Full Article
The U.S. economy is slowing as the Fed struggles to bring down inflation despite having hiked interest rates 10 times in the past year. The inflation numbers for April will be out on May 10 and will give a clearer picture of how the Fed plans to proceed with its aggressive rate hike policy.
However, the U.S. labor market remains resilient despite high inflation. Job growth has slowed marginally from its January highs but is still on the rise. Needless to say, after an impressive 2022, job additions to the economy have been solid this year too. This has been helping staffing firms.
Nonfarm payrolls jumped again in April after a robust first quarter. The Labor Department reported on May 5 that nonfarm payrolls rose 253,000 in April, surpassing expectations of a rise of 180,000. This is quite higher than the consensus estimate.
Although it is lower than the record 504,000 job additions in January, the numbers are higher than in March, when the economy added 236,000 jobs.
Inflation has lately been showing signs of slowing, which is a positive. The March consumer price index (CPI) reading will be out on Wednesday, followed by the producer price index numbers on Thursday.
Although CPI data showed that inflation dipped to 6% in February compared to 6.4% in January, it still remains elevated. Even if CPI figures show a decline in March, it is expected to be far higher than the Fed’s target level of 2%, which might make the Fed continue with its aggressive rate hikes.
April job additions were across various categories. Business and professional services led the growth with 43,000 job additions. Healthcare added 40,000 jobs, while leisure and hospitality added 34,000 jobs. Government job additions increased by 23,000.
The finance sector, which has been struggling lately, also added 23,000 new jobs.
Also, the unemployment rate fell to 3.4% in April against estimates of 3.6%. April’s reading is now at the lowest level since 1969.
Although a large number of companies, especially tech firms, are going for significant layoffs, the robust job additions to the economy continue. The Labor Department also said that job openings dropped below 10 million in February, the first time in two years, but there still seems to be plenty of openings.
Stocks to Watch
The current situation makes for an ideal opportunity to invest in staffing stocks.
Heidrick & Struggles International, Inc. serves the executive talent and leadership needs of the world's top organizations as the premier provider of leadership consulting, culture shaping and senior-level executive search services. With years of experience in fulfilling their clients' leadership needs, HSII offers and conducts executive search services in every major business center in the world.
Heidrick & Struggles International’s expected earnings growth rate for next year is 0.8%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. HSII International presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GEE Group Inc. is a provider of professional staffing services and solutions. JOB, formerly known as General Employment Enterprises, Inc., is based in Naperville, IL.
GEE Group’s expected earnings growth rate for next year is 100%. Shares of JOB have gained 22% in the past 30 days. GEE Grouppresently carries a Zacks Rank #3.
Insperity, Inc. provides an array of human resources (HR) and business solutions designed to help improve business performance. Since its formation in 1986, NSP has evolved from being solely a professional employer organization to a comprehensive business performance solutions provider.
Insperity’s expected earnings growth rate for next year is 5.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. NSP presently carries a Zacks Rank #3.
Randstad N.V. operates as a global provider of HR services, including temporary staffing, permanent placement, recruitment of middle and senior managers, on-site consulting, seconded specialists and specialized HR services. RANJY also recruits supervisors, managers, professionals, interim specialists and consultants with professional qualifications for middle and senior management positions.
Randstad’sexpected earnings growth rate for next year is 4.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. RANJY presently sports a Zacks Rank #1 (Strong Buy).
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
4 Staffing Stocks to Watch on Robust April Job Additions
The U.S. economy is slowing as the Fed struggles to bring down inflation despite having hiked interest rates 10 times in the past year. The inflation numbers for April will be out on May 10 and will give a clearer picture of how the Fed plans to proceed with its aggressive rate hike policy.
However, the U.S. labor market remains resilient despite high inflation. Job growth has slowed marginally from its January highs but is still on the rise. Needless to say, after an impressive 2022, job additions to the economy have been solid this year too. This has been helping staffing firms.
Stocks like Heidrick & Struggles International, Inc. (HSII - Free Report) , GEE Group Inc. (JOB - Free Report) , Insperity, Inc. (NSP - Free Report) and Randstad N.V. (RANJY - Free Report) are likely to benefit in the near term.
Robust Job Additions Continue
Nonfarm payrolls jumped again in April after a robust first quarter. The Labor Department reported on May 5 that nonfarm payrolls rose 253,000 in April, surpassing expectations of a rise of 180,000. This is quite higher than the consensus estimate.
Although it is lower than the record 504,000 job additions in January, the numbers are higher than in March, when the economy added 236,000 jobs.
Inflation has lately been showing signs of slowing, which is a positive. The March consumer price index (CPI) reading will be out on Wednesday, followed by the producer price index numbers on Thursday.
Although CPI data showed that inflation dipped to 6% in February compared to 6.4% in January, it still remains elevated. Even if CPI figures show a decline in March, it is expected to be far higher than the Fed’s target level of 2%, which might make the Fed continue with its aggressive rate hikes.
April job additions were across various categories. Business and professional services led the growth with 43,000 job additions. Healthcare added 40,000 jobs, while leisure and hospitality added 34,000 jobs. Government job additions increased by 23,000.
The finance sector, which has been struggling lately, also added 23,000 new jobs.
Also, the unemployment rate fell to 3.4% in April against estimates of 3.6%. April’s reading is now at the lowest level since 1969.
Although a large number of companies, especially tech firms, are going for significant layoffs, the robust job additions to the economy continue. The Labor Department also said that job openings dropped below 10 million in February, the first time in two years, but there still seems to be plenty of openings.
Stocks to Watch
The current situation makes for an ideal opportunity to invest in staffing stocks.
Heidrick & Struggles International, Inc. serves the executive talent and leadership needs of the world's top organizations as the premier provider of leadership consulting, culture shaping and senior-level executive search services. With years of experience in fulfilling their clients' leadership needs, HSII offers and conducts executive search services in every major business center in the world.
Heidrick & Struggles International’s expected earnings growth rate for next year is 0.8%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. HSII International presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GEE Group Inc. is a provider of professional staffing services and solutions. JOB, formerly known as General Employment Enterprises, Inc., is based in Naperville, IL.
GEE Group’s expected earnings growth rate for next year is 100%. Shares of JOB have gained 22% in the past 30 days. GEE Grouppresently carries a Zacks Rank #3.
Insperity, Inc. provides an array of human resources (HR) and business solutions designed to help improve business performance. Since its formation in 1986, NSP has evolved from being solely a professional employer organization to a comprehensive business performance solutions provider.
Insperity’s expected earnings growth rate for next year is 5.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. NSP presently carries a Zacks Rank #3.
Randstad N.V. operates as a global provider of HR services, including temporary staffing, permanent placement, recruitment of middle and senior managers, on-site consulting, seconded specialists and specialized HR services. RANJY also recruits supervisors, managers, professionals, interim specialists and consultants with professional qualifications for middle and senior management positions.
Randstad’sexpected earnings growth rate for next year is 4.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. RANJY presently sports a Zacks Rank #1 (Strong Buy).