The unemployment rate’s recent dip to 8.3 percent is great news for staffing firms, as workers are not only looking for jobs in general but better jobs in this improved economy.
TheStreet, a digital financial media company, reports the four staffing stocks to watch:
- Robert Half International: Although the company didn’t take a deep hit during the recession, its revenues in 2010 and 2011 were less than those in 2006 and 2007. The improving economy can help Robert Half eventually get back to those pre-recession levels, especially as it is a vendor of choice for many companies.
- Manpower Group: The company’s shares decreased last summer, mainly because of its strong European presence. While European markets lag behind U.S. markets, they will ultimately see a similar improvement. Analysts predict Manpower’s EPS will decrease to about 5 percent this year but sharply improve after that.
- Kelly Services: Kelly is in transition as much of its work is transferring from temporary to permanent placements. As companies that have been relying heavily on temporary placements shift to more permanent placements, this will boost Kelly’s margins.
- On Assignment: A more conservative play, On Assignment provides staffing in health care, biotech research, engineering and other niches that aren’t economically sensitive. It has topped EPS estimates by at least 14 percent for four straight quarters and releases its recent numbers Feb. 14.
For more information on these stocks, read the full article by clicking here.