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Insperity (NSP) Rides on PEO Industry Strength Amid Cost Woes

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Insperity, Inc. NSP is currently benefiting from strength in the professional employer organization (“PEO”) services industry and a strong cash position despite increasing expenses remaining a concern.

The company recently reported fourth-quarter 2021 adjusted earnings of 34 cents per share that missed the Zacks Consensus Estimate by 53.4% and decreased 30.6% year over year. Revenues of $1.29 billion surpassed the consensus mark by 4.9% and increased 22.2% year over year.

Notably, the stock gained 16.9% in the past month, significantly outperforming the 1.7% growth of the industry it belongs to.

Insperity, Inc. Price

Insperity, Inc. Price
Insperity, Inc. Price

Insperity, Inc. price | Insperity, Inc. Quote

How is NSP Doing?

Insperity looks strong on the back of a growing PEO industry that is currently being driven by growth of small- and medium-sized businesses, increased need of providing employee benefits, and complex regulation of payroll, payroll tax and employment issues. Insperity, being an integrated human resources and business solutions provider, offers a comprehensive suite of HR services solutions through PEO services known as Workforce Optimization and Workforce Synchronization solutions.

The company exited the December quarter with cash and equivalents of $655 million, which is above its total debt of $369 million. This indicates that the company has sufficient cash to meet its debt obligations. Moreover, Insperity does not have any current debt.

Insperity is seeing an increase in expenses as it continues to invest in growth, technology, and product and service offerings. During 2021, adjusted operating expenses of $646.77 million increased 5.7% year over year. The same rose 12.1% year over year in 2020 and 10.7% in 2019.

Zacks Rank and Stocks to Consider

Insperity currently carries a Zacks Rank #5 (Strong Sell).

Some stocks in the broader Business Services sector that investors can consider are Cross Country Healthcare CCRN, Accenture ACN and Clean Harbors CLH.

Cross Country Healthcare sports a Zacks Rank #1 (Strong Buy). The company has a long-term earnings growth of 21.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cross Country Healthcare has a trailing four-quarter earnings surprise of 41.5%, on average. CCRN’s shares have surged 85.5% in the past year.

Accenture carries a Zacks Rank #2 (Buy). The company has an expected earnings growth rate of 19.8% for the current year. It has delivered a trailing four-quarter earnings surprise of 5.3%, on average.

Accenture’s shares have surged 23.4% in the past year. The company has a long-term earnings growth of 10%.

Clean Harbors’ carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 43.2%, on average.

CLH’s shares have surged 7.1% in the past year.


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Accenture PLC (ACN) : Free Stock Analysis Report

Insperity, Inc. (NSP) : Free Stock Analysis Report

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