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Why Should You Retain Robert Half (RHI) in Your Portfolio?

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A prudent investment decision involves buying stocks that have solid prospects and selling those that carry risks. At times, it is rational to hold certain stocks that have enough potential but are weighed down by tough market conditions.

We believe that Robert Half International Inc. (RHI - Free Report) , with expected long-term earnings per share growth rate of 7.9% and a market cap of $6.8 billion, is a stock that investors should retain in their portfolios.

Growth Factors for the Company

The staffing industry is currently in good shape, benefiting from economic strength and stability. With strong manufacturing and non-manufacturing activities, there is plenty of room for Robert Half’s growth in the United States in the near to mid-term. Tight labor markets globally continue to keep strong demand for the company’s professional staffing services.

Protiviti, the company’s subsidiary through which it offers risk consulting, internal audit and information technology consulting services, is strongly positioned in the market and currently a double-digit margin and revenue performer.

Robert Half has been utilizing a major share of its capital expenditures on investments in software initiatives and technology infrastructure. This, along with broad and deep client as well as candidate database, and network scope and global scale is likely to drive long-term growth for the company.

Wrapping Up

Despite riding on significant growth prospects, Robert Half is not free from headwinds. The company is witnessing escalation in costs as it is making huge investments in software and technology, while being embroiled in legal matters and proceedings. Nevertheless, we believe that global base and a broad and deep client base bode well for the long term.

Zacks Rank & Other Stocks to Consider

Currently, Robert Half is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few top-ranked stocks in the broader Zacks Business Services sector are Navigant Consulting , WEX (WEX - Free Report) and FLEETCOR Technologies . While Navigant Consulting sports a Zacks Rank #1, WEX and FLEETCOR carry a Zacks Rank #2 (Buy).

Long-term expected EPS (three to five years) growth rate for Navigant Consulting, WEX and FLEETCOR is 13.5%, 15% and 16%, respectively.

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