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The Zacks Analyst Blog Highlights Kforce, Robert Half International, Staffing 360 Solutions and Kelly Services
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For Immediate Release
Chicago, IL – May 11, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kforce (KFRC - Free Report) , Robert Half International (RHI - Free Report) , Staffing 360 Solutions (STAF - Free Report) and Kelly Services (KELYA - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Gain as U.S. Job Market Remains on Solid Footing
The U.S. economy quite successfully churned out jobs in April despite the Federal Reserve's policies to cool the economy. The U.S. labor market showed resilience amid the ongoing banking crisis and elevated inflation.
The Labor Department added that nonfarm payrolls increased by 253,000 last month, the best gain since January, and easily surpassed analysts' estimate of growth of 180,000.
Hiring in April, in reality, was robust and reversed a cooling trend that had marked the first three months of the year. Job gains were primarily strong in professional and business services, healthcare, leisure, and hospitality, to name a few.
While employers in the United States added 43,000 jobs in the professional and services field, healthcare saw 40,000 job gains. That was followed by 31,000 job additions in the leisure and hospitality field.
What's more, 23,000 jobs were added in the troubled banking industry. Let us not forget that the Silicon Valley Bank collapsed due to run-on deposits, and it led to a contagion effect, which in due course impacted banks such as Signature Bank and First Republic Bank.
Government hiring also increased by 23,000. Overall, hiring was much stronger in areas that had earlier faced labor shortages than rate-sensitive areas, including manufacturing and retail.
Hiring in April bounced back from downwardly revised job additions in March and February. Employers added fewer jobs in the previous months amid moderate economic growth.
In the first quarter, gross domestic product (GDP) advanced at an annualized pace of 1.1%, less than economists' estimate of growth of 2%. This is also less than the 2.6% annualized growth in the fourth quarter of last year.
Nonetheless, the unemployment rate came in at 3.4% in April, down from March's 3.5%, and matched the lowest reading since 1969, added the Labor Department. The jobless rate for Blacks, Hispanics, and Asians all declined.
Now, with employers adding jobs at a strong clip in April, and reversing a cooling trend, shares of staffing companies are undoubtedly poised to gain. This is because staffing players are the direct beneficiaries of job additions.
Additionally, the leading indicator of future employment growth increased in April, something that bodes well for staffing stock as well. The Employment Trends Index of the Conference Board increased to 116.18 in April, up from March's downwardly revised 115.51. Thus, we have highlighted four staffing stocks that are worth a look now.
Kforce provides professional staffing services and solutions to clients on both a temporary and permanent basis through the Technology Finance and Accounting segments.
KFRC, currently, has a Zacks Rank #3 (Hold). The company's expected earnings growth rate for next year is 11.5%. KFRC's shares have already gained 19.8% in the past five-year period. You can see the complete list of today's Zacks #1 Rank stocks here.
Robert Half International is one of the world's largest providers of professional consulting and staffing services.
RHI, currently, has a Zacks Rank #3. The company's expected earnings growth rate for next year is 17.8%. RHI's shares have already gained 15.1% in the past five years.
Staffing 360 Solutions is engaged in a global buy-and-build strategy through the acquisition of staffing organizations in the United States.
STAF, currently, has a Zacks Rank #3. The company's expected earnings growth rate for the current quarter is 121.1%. STAF's expected earnings growth rate for the next quarter is nearly 114%.
Kelly Services is a global leader in providing workforce solutions. It has offices located in major cities in the United States.
KELYA, currently, has a Zacks Rank #3. The company's expected earnings growth rate for the current and next year are 3.8% and 37.7%, respectively. KELYA's shares are likely to gain 13% in the next five-year period.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Kforce, Robert Half International, Staffing 360 Solutions and Kelly Services
For Immediate Release
Chicago, IL – May 11, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Kforce (KFRC - Free Report) , Robert Half International (RHI - Free Report) , Staffing 360 Solutions (STAF - Free Report) and Kelly Services (KELYA - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 Stocks to Gain as U.S. Job Market Remains on Solid Footing
The U.S. economy quite successfully churned out jobs in April despite the Federal Reserve's policies to cool the economy. The U.S. labor market showed resilience amid the ongoing banking crisis and elevated inflation.
The Labor Department added that nonfarm payrolls increased by 253,000 last month, the best gain since January, and easily surpassed analysts' estimate of growth of 180,000.
Hiring in April, in reality, was robust and reversed a cooling trend that had marked the first three months of the year. Job gains were primarily strong in professional and business services, healthcare, leisure, and hospitality, to name a few.
While employers in the United States added 43,000 jobs in the professional and services field, healthcare saw 40,000 job gains. That was followed by 31,000 job additions in the leisure and hospitality field.
What's more, 23,000 jobs were added in the troubled banking industry. Let us not forget that the Silicon Valley Bank collapsed due to run-on deposits, and it led to a contagion effect, which in due course impacted banks such as Signature Bank and First Republic Bank.
Government hiring also increased by 23,000. Overall, hiring was much stronger in areas that had earlier faced labor shortages than rate-sensitive areas, including manufacturing and retail.
Hiring in April bounced back from downwardly revised job additions in March and February. Employers added fewer jobs in the previous months amid moderate economic growth.
In the first quarter, gross domestic product (GDP) advanced at an annualized pace of 1.1%, less than economists' estimate of growth of 2%. This is also less than the 2.6% annualized growth in the fourth quarter of last year.
Nonetheless, the unemployment rate came in at 3.4% in April, down from March's 3.5%, and matched the lowest reading since 1969, added the Labor Department. The jobless rate for Blacks, Hispanics, and Asians all declined.
Now, with employers adding jobs at a strong clip in April, and reversing a cooling trend, shares of staffing companies are undoubtedly poised to gain. This is because staffing players are the direct beneficiaries of job additions.
Additionally, the leading indicator of future employment growth increased in April, something that bodes well for staffing stock as well. The Employment Trends Index of the Conference Board increased to 116.18 in April, up from March's downwardly revised 115.51. Thus, we have highlighted four staffing stocks that are worth a look now.
Kforce provides professional staffing services and solutions to clients on both a temporary and permanent basis through the Technology Finance and Accounting segments.
KFRC, currently, has a Zacks Rank #3 (Hold). The company's expected earnings growth rate for next year is 11.5%. KFRC's shares have already gained 19.8% in the past five-year period. You can see the complete list of today's Zacks #1 Rank stocks here.
Robert Half International is one of the world's largest providers of professional consulting and staffing services.
RHI, currently, has a Zacks Rank #3. The company's expected earnings growth rate for next year is 17.8%. RHI's shares have already gained 15.1% in the past five years.
Staffing 360 Solutions is engaged in a global buy-and-build strategy through the acquisition of staffing organizations in the United States.
STAF, currently, has a Zacks Rank #3. The company's expected earnings growth rate for the current quarter is 121.1%. STAF's expected earnings growth rate for the next quarter is nearly 114%.
Kelly Services is a global leader in providing workforce solutions. It has offices located in major cities in the United States.
KELYA, currently, has a Zacks Rank #3. The company's expected earnings growth rate for the current and next year are 3.8% and 37.7%, respectively. KELYA's shares are likely to gain 13% in the next five-year period.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.