For Immediate Release
Chicago, IL – April 20, 2017 – Today, Zacks Investment Ideas feature highlights Features: TrueBlue Inc. (NYSE: (TBI - Free Report) – Free Report ), Kelly Services Inc. (NASDAQ: (KELYA - Free Report) – Free Report ) and ManpowerGroup (NYSE: (MAN - Free Report) – Free Report ).
How to Profit from the Coming Infrastructure & Transportation Boom
Governmental red tape causes delays in almost every project originated at the federal level. Back in 2015 President Obama signed into law the $305 billion Fixing America’s Surface Transportation Act (ironically dubbed the FAST Act), and the funding is just getting to the States in 2017. These projects include $205 billion for U.S. highways, and $48 billion on transit projects. The funding is set to expire in 2020, just about the time now President Trumps expected U.S. Infrastructure plan will be getting off the ground (given the current speed of congress).
Fast forward to 2017, states are now allocating these funds, and accepting bids for the improvement projects. These bidding firms will need to hire new labor, engineers, and a flurry of other manufacturing job openings. This is where our top staffing firms come into the equation.
Staffing agencies have access to a myriad of labor participants ranging from executives to day laborers. We have looked into many of these firms to see which ones have the most exposure to the jobs needed to start and complete these new transportation and infrastructure job openings and below are our top picks to fill these job openings.
Our Picks for the Staffing Sector
TrueBlue Inc. (NYSE:(TBI - Free Report) – Free Report ), a Zacks Rank of #2 (Buy), is the parent company of Labor Ready, Spartan Staffing, CLP Resources, and PlaneTechs. TrueBlue's brands provide general labor, light industrial and skilled trades services to small to mid-sized businesses in the construction, warehousing, hospitality, landscaping, transportation, light manufacturing, retail, wholesale, facilities, sanitation, and aviation industries.
TrueBlue reports earnings on May 1 after the market closes. The company has posted an average positive earnings surprise of +5.4% over the past four quarters. TBI has been outperforming the S&P 500 since the election in November.
Kelly Services Inc. (NASDAQ: (KELYA - Free Report) – Free Report ), a Zacks Rank #3 (Hold) provides temporary office clerical, marketing, professional, technical, light industrial, home care services, management services and other business services to a diversified group of customers through offices located in major cities of the United States, Australia, Canada, Denmark, France, Ireland, Italy, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Russia, Spain, Switzerland and United Kingdom. Kelly Temporary Services provides office clerical, marketing, professional, technical, semi-skilled light industrial and management services.
Kelly Services reports earnings on May 10. The company has posted positive earnings surprises in the past two quarters of +5.8%, and +2.3%. KELYA is outperforming the S&P 500 since the election as well.
ManpowerGroup (NYSE:(MAN - Free Report) – Free Report ), holds a Zacks Rank #3 (Hold), and is a leading non-governmental employment services organization. The company's largest operations, based on revenues, are located in the United States, France and the United Kingdom. The company provides a variety of staffing and workforce management services and solutions, including temporary staffing services, contract services and training and testing of temporary and permanent workers. The company provides employment services to a wide variety of customers.
ManpowerGroup reports earnings on April 21 before the market opens. MAN has beaten the Zacks consensus earnings estimates for the past 6 consecutive quarters with a four quarter average positive earnings surprise of +6.3%. Also, like our other two staffing companies, MAN has outpaced the S&P 500 since the election.
The unemployment rate has hit a 10-year low, 4.5%, and the economy is at almost full employment, which has increased the need for staffing services to fill these new infrastructure and transportation job openings. Further, this is not just a summer, or seasonal issue, these projects will take years to complete. This would indicate that the next few years might be a golden age for staffing service companies.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Follow Brian Bolan on Twitter: @BBolan1
Want more articles from this author? Go to Zacks.com on this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Brian Bolan is a Stock Strategist for Zacks.com.
He runs Stocks Under $10 Investor service where he looks for low priced stocks that are seeing positive earnings estimate revisions. This popular service has seen some strong early returns and offers a free trial via the Zacks Ultimate service.
Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
Get the full Report on TBI – FREE
Get the full Report on KELYA – FREE
Get the full Report on MAN – FREE
Follow us on Twitter: https://twitter.com/ZacksResearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
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.