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3 Staffing Stocks in Focus as Labor Market Remains Resilient
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The labor market has cooled from its 2023 highs but remains on solid ground, with thousands of jobs being added to the economy every month. Higher consumer spending and a resilient jobs market have posed major challenges for the Federal Reserve in its fight against sky-high inflation.
Higher interest rates have rattled the jobs market. The Bureau of Labor Statistics said on Apr 5 that nonfarm payrolls jumped by 303,000 in March, a lot higher than the consensus estimate of an increase of 200,000. This was also the largest jump since May 2023.
Moreover, job creations remained above the threshold of 100,000 new jobs per month. Hiring was robust across all industries.
Healthcare saw 72,000 new job additions. The government added 71,000 jobs, while new jobs in leisure and hospitality, construction, and retail trade rose by 49,000, 39,000, and 18,000, respectively.
Overall job additions in the first quarter remained impressive. New job additions in January were 259,000, while in February it was 270,000. More importantly, the unemployment rate fell sharply in March. The unemployment rate dropped to 3.8% in March, lower than the consensus estimate of 3.9%.
Our Choices
Given the solid job additions in March and the first quarter, it would be ideal to invest in staffing firms like KornFerry International (KFY - Free Report) ,DLH Holdings Corp. (DLHC - Free Report) and Staffing 360 Solutions, Inc. (STAF - Free Report) . Each of our picks carries a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
KornFerry International is the world's leading and largest executive recruitment firm with the broadest global presence in the executive recruitment industry. KFY provides executive recruitment services exclusively on a retained basis and serves the global recruitment needs of our clients from middle to executive management. KornFerry International’sclients are many of the world's largest and most prestigious public and private companies, middle-market and emerging growth companies as well as governmental and not-for-profit organizations.
KornFerry International’s expected earnings growth rate for next year is 13.2%. The Zacks Consensus Estimate for current-year earnings has improved 6.1% over the past 60 days.KFY presently sports a Zacks Rank #1.
DLH Holdings Corp. serves clients throughout the United States as a full-service provider of healthcare, logistics and technical support services to DoD and Federal agencies. DLHC’s healthcare delivery solutions include professional services, from case management, to health and injury assessment, critical care, medical/surgical, emergency room/trauma center, counseling, behavioral health and trauma brain injury, medical systems analysis, and medical logistics, and several allied support services.
DLH Holdings’ expected earnings growth rate for next year is 72.7%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. DLHC currently has a Zacks Rank #3.
Staffing 360 Solutions, Inc. is engaged in a global buy-and-build strategy through the acquisition of staffing organizations in the U.S. and the UK. Through both organic growth and acquisitions, STAF provides permanent placement services in the finance and accounting, administrative, engineering and IT staffing space.
Staffing 360 Solutions’ expected earnings growth rate for the next quarter is 85.7%. The Zacks Consensus Estimate for current-year earnings has improved 38% over the past 60 days. STAF currently carries a Zacks Rank #2.
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3 Staffing Stocks in Focus as Labor Market Remains Resilient
The labor market has cooled from its 2023 highs but remains on solid ground, with thousands of jobs being added to the economy every month. Higher consumer spending and a resilient jobs market have posed major challenges for the Federal Reserve in its fight against sky-high inflation.
Higher interest rates have rattled the jobs market. The Bureau of Labor Statistics said on Apr 5 that nonfarm payrolls jumped by 303,000 in March, a lot higher than the consensus estimate of an increase of 200,000. This was also the largest jump since May 2023.
Moreover, job creations remained above the threshold of 100,000 new jobs per month. Hiring was robust across all industries.
Healthcare saw 72,000 new job additions. The government added 71,000 jobs, while new jobs in leisure and hospitality, construction, and retail trade rose by 49,000, 39,000, and 18,000, respectively.
Overall job additions in the first quarter remained impressive. New job additions in January were 259,000, while in February it was 270,000. More importantly, the unemployment rate fell sharply in March. The unemployment rate dropped to 3.8% in March, lower than the consensus estimate of 3.9%.
Our Choices
Given the solid job additions in March and the first quarter, it would be ideal to invest in staffing firms like KornFerry International (KFY - Free Report) ,DLH Holdings Corp. (DLHC - Free Report) and Staffing 360 Solutions, Inc. (STAF - Free Report) . Each of our picks carries a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
KornFerry International is the world's leading and largest executive recruitment firm with the broadest global presence in the executive recruitment industry. KFY provides executive recruitment services exclusively on a retained basis and serves the global recruitment needs of our clients from middle to executive management. KornFerry International’sclients are many of the world's largest and most prestigious public and private companies, middle-market and emerging growth companies as well as governmental and not-for-profit organizations.
KornFerry International’s expected earnings growth rate for next year is 13.2%. The Zacks Consensus Estimate for current-year earnings has improved 6.1% over the past 60 days.KFY presently sports a Zacks Rank #1.
DLH Holdings Corp. serves clients throughout the United States as a full-service provider of healthcare, logistics and technical support services to DoD and Federal agencies. DLHC’s healthcare delivery solutions include professional services, from case management, to health and injury assessment, critical care, medical/surgical, emergency room/trauma center, counseling, behavioral health and trauma brain injury, medical systems analysis, and medical logistics, and several allied support services.
DLH Holdings’ expected earnings growth rate for next year is 72.7%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. DLHC currently has a Zacks Rank #3.
Staffing 360 Solutions, Inc. is engaged in a global buy-and-build strategy through the acquisition of staffing organizations in the U.S. and the UK. Through both organic growth and acquisitions, STAF provides permanent placement services in the finance and accounting, administrative, engineering and IT staffing space.
Staffing 360 Solutions’ expected earnings growth rate for the next quarter is 85.7%. The Zacks Consensus Estimate for current-year earnings has improved 38% over the past 60 days. STAF currently carries a Zacks Rank #2.