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Initial Claims Lowest Since 1969: 4 Staffing Stocks to Buy
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Americans filing for unemployment benefits declined for the third week at a stretch in mid-September. The latest U.S. Labor Department data revealed that seasonally adjusted initial claims for the week ended Sep 15 declined 3,000 from the prior week’s unrevised level to 201,000. This is the lowest initial claims since Nov 15, 1969 and also came below the consensus estimate of 209,000.
The four-week moving average declined 2,250 from the previous week’s unrevised average to 205,750, the lowest since Dec 6, 1969. The metric is considered a better measure of labor market trends, as it evens out the sharp fluctuations in weekly reports. The average level of jobless claims continues to hover just above the 200,000 mark, which was last seen in the early 1970s.
Labor Market Strong
With unemployment rate remaining at an 18-year low of 3.9%, the U.S. economy added 201,000 jobs in August. This marked the 95th straight month of employment gain and also came higher than the average monthly gain of 196,000 jobs in the past year.
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. Average hourly earnings in August came in at $27.16, up 10 cents sequentially and 77 cents on a year-over-year basis. Average weekly earnings increased 0.4% to $937.02, leading to a year-over-year increase of 3.2%. Average workweek remained flat at 34.5 hours.
Higher wage growth, a tightening labor market and a low unemployment rate indicate a bullish economy.
Economic Growth Continues
U.S. GDP grew 4.1% in the second quarter, almost doubling from 2.2% increase witnessed in the first quarter and recording the strongest performance in nearly four years. Strong consumer and business spending as well as a surge in exports (despite the heightened tensions over trade policy) drove economic growth. The Fed forecasts 2018 GDP to rise 2.8% with 2.4% and 2% growth forecast for 2019 and 2020, respectively.
4 Staffing Stocks You Should Buy Now
Decline in weekly jobless claims and strong non-farm payrolls data for August 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.
The buoyancy in the staffing space is further confirmed by its Zacks Industry Rank in the top 44% (111 out of the 250 plus groups). In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
With the help of the Zacks Stock Screener, we have zeroed in on four promising staffing stocks, which have a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of A or B and a solid expected earnings growth rate for the current year. These stocks also witnessed upward earnings estimate revisions in the last 60 days. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best investment opportunities for investors. Thus, the selected companies appear to be compelling investment propositions at the moment.
Let’s have a look at the top four gainers:
Based in Illinois, Heidrick & Struggles International, Inc. (HSII - Free Report) is a provider of executive search, culture shaping, and leadership consulting services. The company carries a Zacks Rank #1 and has a VGM Score of A. Its shares have gained 42.6% year to date.
The company’s expected earnings growth rate for the current year is 84.4%. The Zacks Consensus Estimate for the current year improved 11% in the last 60 days.
Based in Texas, BG Staffing, Inc. (BGSF - Free Report) is a provider of temporary staffing services. The company carries a Zacks Rank #2 and has a VGM Score of A. Its shares have climbed 62.4% year to date.
The company’s expected earnings growth rate for the current year is 61.4%. The Zacks Consensus Estimate for current year EPS improved 19.9% in the last 60 days.
Based in Florida, Kforce, Inc. (KFRC - Free Report) is a provider of professional staffing services. The company carries a Zacks Rank #2 and has a VGM Score of A. Its shares have soared 48.7% year to date.
The company’s expected earnings growth rate for the current year is 43.3%. The Zacks Consensus Estimate for current year EPS improved 2.3% in the last 60 days.
Based in California, Robert Half International Inc. (RHI - Free Report) provides staffing and risk consulting services. The company carries a Zacks Rank #2 and has a VGM Score of A. Its shares have rallied 26.6% year to date.
The company’s expected earnings growth rate for the current year is 32.7%. The Zacks Consensus Estimate for current year EPS improved 2.4% in the last 60 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Initial Claims Lowest Since 1969: 4 Staffing Stocks to Buy
Americans filing for unemployment benefits declined for the third week at a stretch in mid-September. The latest U.S. Labor Department data revealed that seasonally adjusted initial claims for the week ended Sep 15 declined 3,000 from the prior week’s unrevised level to 201,000. This is the lowest initial claims since Nov 15, 1969 and also came below the consensus estimate of 209,000.
The four-week moving average declined 2,250 from the previous week’s unrevised average to 205,750, the lowest since Dec 6, 1969. The metric is considered a better measure of labor market trends, as it evens out the sharp fluctuations in weekly reports. The average level of jobless claims continues to hover just above the 200,000 mark, which was last seen in the early 1970s.
Labor Market Strong
With unemployment rate remaining at an 18-year low of 3.9%, the U.S. economy added 201,000 jobs in August. This marked the 95th straight month of employment gain and also came higher than the average monthly gain of 196,000 jobs in the past year.
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. Average hourly earnings in August came in at $27.16, up 10 cents sequentially and 77 cents on a year-over-year basis. Average weekly earnings increased 0.4% to $937.02, leading to a year-over-year increase of 3.2%. Average workweek remained flat at 34.5 hours.
Higher wage growth, a tightening labor market and a low unemployment rate indicate a bullish economy.
Economic Growth Continues
U.S. GDP grew 4.1% in the second quarter, almost doubling from 2.2% increase witnessed in the first quarter and recording the strongest performance in nearly four years. Strong consumer and business spending as well as a surge in exports (despite the heightened tensions over trade policy) drove economic growth. The Fed forecasts 2018 GDP to rise 2.8% with 2.4% and 2% growth forecast for 2019 and 2020, respectively.
4 Staffing Stocks You Should Buy Now
Decline in weekly jobless claims and strong non-farm payrolls data for August 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.
The buoyancy in the staffing space is further confirmed by its Zacks Industry Rank in the top 44% (111 out of the 250 plus groups). In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
With the help of the Zacks Stock Screener, we have zeroed in on four promising staffing stocks, which have a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of A or B and a solid expected earnings growth rate for the current year. These stocks also witnessed upward earnings estimate revisions in the last 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best investment opportunities for investors. Thus, the selected companies appear to be compelling investment propositions at the moment.
Let’s have a look at the top four gainers:
Based in Illinois, Heidrick & Struggles International, Inc. (HSII - Free Report) is a provider of executive search, culture shaping, and leadership consulting services. The company carries a Zacks Rank #1 and has a VGM Score of A. Its shares have gained 42.6% year to date.
The company’s expected earnings growth rate for the current year is 84.4%. The Zacks Consensus Estimate for the current year improved 11% in the last 60 days.
Based in Texas, BG Staffing, Inc. (BGSF - Free Report) is a provider of temporary staffing services. The company carries a Zacks Rank #2 and has a VGM Score of A. Its shares have climbed 62.4% year to date.
The company’s expected earnings growth rate for the current year is 61.4%. The Zacks Consensus Estimate for current year EPS improved 19.9% in the last 60 days.
Based in Florida, Kforce, Inc. (KFRC - Free Report) is a provider of professional staffing services. The company carries a Zacks Rank #2 and has a VGM Score of A. Its shares have soared 48.7% year to date.
The company’s expected earnings growth rate for the current year is 43.3%. The Zacks Consensus Estimate for current year EPS improved 2.3% in the last 60 days.
Based in California, Robert Half International Inc. (RHI - Free Report) provides staffing and risk consulting services. The company carries a Zacks Rank #2 and has a VGM Score of A. Its shares have rallied 26.6% year to date.
The company’s expected earnings growth rate for the current year is 32.7%. The Zacks Consensus Estimate for current year EPS improved 2.4% in the last 60 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>