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Weekly Jobless Claims at 44.5-Year Low: 5 Staffing Picks
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There are fresh signs of a rapidly tightening labor market as the latest U.S. Labor Department data revealed that jobless claims for the week ended Jun 9 declined to a near 44 and a half-year low. The figure was 218,000, down 4,000 from the previous week. The four-week moving average that evens out the sharp fluctuations in weekly reports declined 1,250 to 224,250.
This was the 171th straight week in which the number of Americans filing for unemployment benefits stayed below the 300,000 threshold, the longest streak since 1969. The average level of jobless claims continues to hover just over the 200,000 mark, which was last seen in the early 1970s.
Moreover, the U.S. labor market has been witnessing record-low unemployment levels and strong job additions since the beginning of the year. Given these promising developments in the economy, the staffing industry, which is expected to witness constant currency growth of 7% in 2018 and 6% in 2019 by Staffing Industry Analysts (SIA), stands to gain.
Labor Market Still Tight
While the economy continues to create new jobs despite the 18-year low jobless rate, a tight labor market is compelling companies to pay higher to attract and retain employees. Non-farm payrolls climbed by 2,23,000 jobs last month after rising 1,64,000 last April. This means the economy has now added jobs for 92 months in a row.
Average hourly earnings in May increased 8 cents to $28.92, registering 2.7% year-over-year increase, higher than 2.6% witnessed in April.
Jobs Growth to Continue
The Conference Board’s Employment Trends Index was at 107.69 in May, registering year-over- year growth of 3.9%. Although slightly down from the April figure of 108.00, the index is expected to grow through the year.
Gad Levanon, Chief Economist, at the Conference Board said that “the decline in the Employment Trends Index in May is probably a reversion to trend after the very rapid increases in recent months.” He added that “with the economy growing well above trend, we expect solid job growth to continue despite the difficulty in filling job openings.”
Economic Growth Projection Upbeat
Although GDP growth decelerated in the first quarter to an annualized pace of 2.2%, after averaging higher than 3% in the previous three quarters, income tax cuts and increased government spending are most likely to help the economy rebound in the coming quarters.
The Fed on Wednesday revised 2018 GDP projection to 2.8% from the earlier estimate of 2.7%. The earlier projection of 2.4% growth for 2019 and 2% for 2020 were kept intact.
5 Solid Picks
Decline in weekly jobless claims and strong non-farm payrolls data for May indicate that employers will continue to recruit more people, especially as the economy remains remarkably strong. Consequently, it makes sense to invest in good staffing stocks to enrich one’s portfolio.
We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a solid expected earnings growth rate for the year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Heidrick & Struggles International, Inc. (HSII - Free Report) is a provider of executive search, culture shaping, and leadership consulting services. It currently sports a Zacks Rank #1. The company expects earnings growth of 66.1% for the current year. The Zacks Consensus Estimate for the current year improved 17.5% in the last 60 days.
Insperity Inc. (NSP - Free Report) , engaged in providing an array of human resources and business solutions, also sports a Zacks Rank #1. The company expects earnings growth of 39.2% for the current year. The Zacks Consensus Estimate for the current year improved 12.2% in the last 60 days.
Kforce, Inc. (KFRC - Free Report) is a professional staffing services firm. It carries a Zacks Rank #2. The company has expected earnings growth rate of 40.1% for the current year. The Zacks Consensus Estimate for the current year improved 3.3% in the last 60 days.
BG Staffing, Inc. (BGSF - Free Report) is a national provider of temporary staffing services across a diverse set of industries. It carries a Zacks Rank #2. The company’s expected earnings growth rate for the current year is 37.6%. The Zacks Consensus Estimate for the current year improved 0.7% in the last 60 days.
Robert Half International Inc. (RHI - Free Report) is one of the largest human resource consulting firms in the United States. It also carries a Zacks Rank #2.The company’s expected earnings growth rate for the current year is 29.6%. The Zacks Consensus Estimate for the current year improved 4.3% in the last 60 days.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Weekly Jobless Claims at 44.5-Year Low: 5 Staffing Picks
There are fresh signs of a rapidly tightening labor market as the latest U.S. Labor Department data revealed that jobless claims for the week ended Jun 9 declined to a near 44 and a half-year low. The figure was 218,000, down 4,000 from the previous week. The four-week moving average that evens out the sharp fluctuations in weekly reports declined 1,250 to 224,250.
This was the 171th straight week in which the number of Americans filing for unemployment benefits stayed below the 300,000 threshold, the longest streak since 1969. The average level of jobless claims continues to hover just over the 200,000 mark, which was last seen in the early 1970s.
Moreover, the U.S. labor market has been witnessing record-low unemployment levels and strong job additions since the beginning of the year. Given these promising developments in the economy, the staffing industry, which is expected to witness constant currency growth of 7% in 2018 and 6% in 2019 by Staffing Industry Analysts (SIA), stands to gain.
Labor Market Still Tight
While the economy continues to create new jobs despite the 18-year low jobless rate, a tight labor market is compelling companies to pay higher to attract and retain employees. Non-farm payrolls climbed by 2,23,000 jobs last month after rising 1,64,000 last April. This means the economy has now added jobs for 92 months in a row.
Average hourly earnings in May increased 8 cents to $28.92, registering 2.7% year-over-year increase, higher than 2.6% witnessed in April.
Jobs Growth to Continue
The Conference Board’s Employment Trends Index was at 107.69 in May, registering year-over- year growth of 3.9%. Although slightly down from the April figure of 108.00, the index is expected to grow through the year.
Gad Levanon, Chief Economist, at the Conference Board said that “the decline in the Employment Trends Index in May is probably a reversion to trend after the very rapid increases in recent months.” He added that “with the economy growing well above trend, we expect solid job growth to continue despite the difficulty in filling job openings.”
Economic Growth Projection Upbeat
Although GDP growth decelerated in the first quarter to an annualized pace of 2.2%, after averaging higher than 3% in the previous three quarters, income tax cuts and increased government spending are most likely to help the economy rebound in the coming quarters.
The Fed on Wednesday revised 2018 GDP projection to 2.8% from the earlier estimate of 2.7%. The earlier projection of 2.4% growth for 2019 and 2% for 2020 were kept intact.
5 Solid Picks
Decline in weekly jobless claims and strong non-farm payrolls data for May indicate that employers will continue to recruit more people, especially as the economy remains remarkably strong. Consequently, it makes sense to invest in good staffing stocks to enrich one’s portfolio.
We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a solid expected earnings growth rate for the year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Heidrick & Struggles International, Inc. (HSII - Free Report) is a provider of executive search, culture shaping, and leadership consulting services. It currently sports a Zacks Rank #1. The company expects earnings growth of 66.1% for the current year. The Zacks Consensus Estimate for the current year improved 17.5% in the last 60 days.
Heidrick & Struggles International, Inc. Price
Heidrick & Struggles International, Inc. Price | Heidrick & Struggles International, Inc. Quote
Insperity Inc. (NSP - Free Report) , engaged in providing an array of human resources and business solutions, also sports a Zacks Rank #1. The company expects earnings growth of 39.2% for the current year. The Zacks Consensus Estimate for the current year improved 12.2% in the last 60 days.
Insperity, Inc. Price
Insperity, Inc. Price | Insperity, Inc. Quote
Kforce, Inc. (KFRC - Free Report) is a professional staffing services firm. It carries a Zacks Rank #2. The company has expected earnings growth rate of 40.1% for the current year. The Zacks Consensus Estimate for the current year improved 3.3% in the last 60 days.
Kforce, Inc. Price
Kforce, Inc. Price | Kforce, Inc. Quote
BG Staffing, Inc. (BGSF - Free Report) is a national provider of temporary staffing services across a diverse set of industries. It carries a Zacks Rank #2. The company’s expected earnings growth rate for the current year is 37.6%. The Zacks Consensus Estimate for the current year improved 0.7% in the last 60 days.
BG Staffing Inc Price
BG Staffing Inc Price | BG Staffing Inc Quote
Robert Half International Inc. (RHI - Free Report) is one of the largest human resource consulting firms in the United States. It also carries a Zacks Rank #2.The company’s expected earnings growth rate for the current year is 29.6%. The Zacks Consensus Estimate for the current year improved 4.3% in the last 60 days.
Robert Half International Inc. Price
Robert Half International Inc. Price | Robert Half International Inc. Quote
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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