Yahoo Finance Blowout Jobs Report a Boon for These 5 Staffing Stocks
Federal Reserve officials recently said that the central bank needs to continue raising interest rates to tame inflation. However, higher interest rates do dampen growth, and no doubt the U.S. economy is currently facing the threat of a recession soon. But despite such trying times, the labor market in the United States remains resilient.
January’s job reports were astounding all around. Nonfarm payrolls surged by 517,000 last month, crushing analysts’ forecast of only 187,000 job additions, the U.S. Bureau of Labor Statistics added. Notably, January’s job additions were more than the average monthly gain of 401,000 last year.
Moreover, job gains were robust in January, with almost all the major industries, including white-collar business services, leisure and hospitality, and healthcare adding jobs. But it was the hotels and restaurants industry in particular that led the way with 128,000 job additions.
Many tech companies in recent times announced layoffs, but that didn’t derail overall job additions in the United States. What’s more, hiring was much stronger during the latter half of last year than anticipated. From July through December 2022, the U.S. economy created an additional 304,000 jobs. In the months of November and December, job additions were also revised higher.
What’s more, in January, the unemployment rate slipped to its lowest level since 1969, and now stands at 3.4%. Simultaneously, the labor force participation rate has moved up to 62.4%. This indicates that American citizens still believe that the economy will chug along and companies will do well in the near term.
Now, with jobs being added at a strong clip in January amid optimism about further economic growth, shares of staffing companies are positioned to gain. This is because staffing companies are direct beneficiaries of job additions.
By the way, the Employment Trends Index of the Conference Board, increased to 118.74 in January from an upwardly revised 117.06 in December. In that way, the leading indicator of future employment growth increased for the second straight month in January, something that should bode well for staffing companies. Thus, we have highlighted five staffing stocks that are worth a look now.
HireQuest HQI provides temporary staffing services, which include general labor, and industrial and construction personnel. HQI, currently, has a Zacks Rank #1 (Strong Buy). The company’s expected earnings growth rate for the current year is 33.3%. HQI’s projected earnings growth rate for next year is 35.9%. HQI’s shares have already gained 20.4% in the past five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kforce KFRC provides professional staffing services and solutions to clients on both a temporary and permanent basis through our Technology Finance and Accounting segments. HQI, currently, has a Zacks Rank #1. The company’s expected earnings growth rate for next year is 24.9%. KFRC’s shares have already gained 19.8% in the past five-year period.
ManpowerGroup MAN is one of the leading providers of innovative workforce solutions and services across the globe. HQI, currently, has a Zacks Rank #3 (Hold). The company’s expected earnings growth rate for next year is 20.1%. MAN’s shares have already gained 2.9% in the past five years.
Cross Country Healthcare CCRN is a national leader in providing innovative healthcare workforce solutions and staffing services. HQI, currently, has a Zacks Rank #3. The company’s expected earnings growth rate for the current year is 65.7%. CCRN’s shares have already gained 37% in the past five-year period.
Robert Half International RHI is one of the world's largest providers of professional consulting and staffing services. RHI, currently, has a Zacks Rank #3. The company’s expected earnings growth rate for next year is 18.3%. RHI’s shares have already gained 15.1% in the past five years.
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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
Robert Half International Inc. (RHI) : Free Stock Analysis Report
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HireQuest, Inc. (HQI) : Free Stock Analysis Report
