Here's Why Insperity (NSP) Stock Should Grace Your Portfolio
Insperity, Inc. NSP has been benefiting from robust revenue growth and a strong foothold in the professional employer organization (“PEO”) industry. NSP has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
Let’s delve into the factors that make NSP an investment-worthy stock.
Price Performance
NSP has outperformed the Zacks Staffing Firms industry in the past year. The stock has gained 13.3%, compared with the industrys 3.8% increase in the same time frame.
Earnings Expectations
Earnings growth and stock price gains often indicate a company’s prospects. For full-year 2023, the Zacks Consensus Estimate for earnings is pegged at $5.96 per share, which indicates growth of 6.6% from the year-ago reported figure. This has been revised slightly upward in the past 60 days. The favorable estimate revision reflects the confidence of brokers in the stock.
Earnings History
The company has an impressive earning surprise history, beating the Zacks Consensus Estimate in all four trailing quarters, the average surprise being 21.8%.
Insperity, Inc. Price and EPS Surprise
Insperity, Inc. price-eps-surprise | Insperity, Inc. Quote
Other Positive Factors
Insperity thrives in the flourishing PEO industry driven by small and medium-sized business growth, increased employee benefits, complex regulations and integrated HR solutions. It benefits from Workforce Optimization, Workforce Synchronization and Workforce Administration solutions, which serve select U.S. markets.
Insperity's top-line growth is closely tied to the increase in the average number of worksite employees paid per month. In 2022, the company experienced a 19% year-over-year increase in total revenues, driven by a 1.5% rise in revenues per worksite employee and a 17.7% increase in paid worksite employees. By the end of 2022, the average number of worksite employees paid per month reached 295,005. This growth is attributed to strong sales performance, higher client retention and an increase in net hiring of worksite employees by Insperity's client base.
Insperity's current ratio at the end of first-quarter 2023 was pegged at 1.17, higher than the current ratio of 1.11 reported at the end of the prior-year quarter. It indicates lower risk of default.
The company’s efforts to reward its shareholders are praiseworthy. During 2022 and 2021, the company repurchased 770,000 shares and 716,000 shares for $73 million and $69.7 million, respectively, and paid out dividends totaling $77 million and $144.2 million.
NSP currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Investors interested in the broader Zacks Business Service sector may also consider the following stocks.
Avis Budget CAR: For second-quarter 2023, the Zacks Consensus Estimate for Avis Budget’s revenues suggests a decline of 1.6% year over year to $3.19 billion and the same for earnings indicates a 38.6% plunge to $9.78 per share. The company has an impressive earning surprise history, beating the consensus mark in all four trailing quarters, the average surprise being 65.2%.
CAR currently has a Value Score of A and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Maximus MMS: For second-quarter 2023, the Zacks Consensus Estimate for Maximus’ revenues suggests an increase of 6.9% year over year to $1.2 billion and the same for earnings indicates a 46.2% rise to $1.14 per share. The company has an impressive earning surprise history, beating the consensus mark on three instances and missing on one instance, the average surprise being 9.6%.
MMS currently has a VGM Score of B and a Zacks Rank of 1.
Interpublic Group IPG: For second-quarter 2023, the Zacks Consensus Estimate for IPG’s revenues suggests an increase of 0.6% year over year to $2.39 billion and the same for earnings indicates a 3.2% decline to 61 cents per share. The company has an impressive earning surprise history, beating the consensus mark in three of the four trailing quarters and matching on one instance, the average surprise being 9.5%.
IPG currently has a Value Score of A and a Zacks Rank #2 (Buy).
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Insperity, Inc. (NSP) : Free Stock Analysis Report
Maximus, Inc. (MMS) : Free Stock Analysis Report
