According to the latest data from the Bureau of Labor Statistics, the economy created 288,000 jobs in June, the strongest growth since the technology boom in late 1990. This propelled total U.S. hiring at its fastest pace since early 2006 to 1.4 million for the first half of the year.
Hiring was broad-based, led by professional and business services, which accounted for over 23% of jobs in June. Retailers were the second-highest contributor creating 13.9% new jobs while food service (11.5%) and healthcare (7.3%) rounded off to the top four. Meanwhile, unemployment dropped to the lowest level in almost six years to 6.1%, suggesting increased confidence in the 5-year old U.S. recovery.
The U.S. economy seems to be on top gear after being frozen by winter storms and sub-zero temperatures at the start of the year. This uptrend is likely to continue in the coming months. As such, this healthy hiring number looks more sustainable than it was in the recent past, and increases the appeal for the staffing stocks, in particular for professional & business service. This corner of the staffing space will likely lead all industry segments in new hiring over the coming quarters.
The optimism in the staffing space is also confirmed by its solid Zacks Industry Rank in the top 25%, indicating continued hiring and more job opportunities. This will result in smooth trading for the sector going forward.
That being said, we have found out the top three picks in the staffing industry. This can be easily done by selecting the stocks that have favorable Zacks Rank, suggesting their outperformance in the coming months. While all the top-ranked stocks are likely to outperform, the following three stocks could be better choices to tap into the space. This is especially true as these stocks have at least a Zacks Rank #2 (Buy) and a superior growth potential that could allow them to continue leading the staffing space heading into the second half.
Stocks to Consider
CTPartners Executive Search (CTP) is a leading provider of high quality, industry-focused executive search services globally. It assists the recruitment and hiring of “C-level” executives, other senior executives and board members. The stock has seen solid earnings estimate revisions for both the recently concluded quarter and the current year, over the past 90 days.
The consensus estimate for the second quarter has risen 92% from 13 cents per share while the current year estimates climbed 60% to 77 cents per share. This suggests a bright future for this company.
Tarena International, Inc. (TEDU) is a leading provider of professional education services in China with core strength in Information Technology professional education services including classroom training. The company went public in early April and has been riding higher, gaining over 50% over the past month.
Tarena has incredible potential to grow over the next five years with an exceptional growth rate of 40% compared to the industry average of 16.9%. Further, positive earnings estimate revisions over the past 60 days for the second quarter and the current year justify its solid position.
Robert Half International Inc. (RHI) is an industry leader worldwide in professional consulting and staffing services. It is the parent company of Protiviti, a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit.
The stock has been trending up, hitting new record highs over the past few days and suggesting strong bullishness in the company’s growth story. Robert Half is projected to grow at 16.1% over the next five years and its earnings estimate revisions for the current year has been positive over the past 90 days.Read the Full Research Report on CTP
Read the Full Research Report on TEDU
Read the Full Research Report on RHI
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