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U.S. Private Sector Adds New Jobs: 5 Gainers

Zacks Equity Research

August’s job additions came in lower than expected. The prevailing trade war between the United States and China is predominantly to be blamed for this soft employment report. But, some industries especially in the private sector have reported healthy job additions. This indicates that such industries are expanding, which calls for investing in sound stocks from such industries.

Job Additions in Service Boost Nonfarm Payroll

The U.S. Bureau of Labor Statistics reported an addition of 130,000 jobs in August with unemployment rate remaining at 3.7% for three months in a row. A total of 96,000 jobs were added in the private sector despite prevailing trade tussles discouraging job creations in the manufacturing and other blue collar industries.

Further, per a Forbes report, after conversation with 30 recruiters throughout the United States a conclusion could be reached that job market is robust. In fact, according to executive search professionals, “corporate demand outweighs supply of qualified candidates.”  Companies are facing trouble in hiring employees with requisite skills and experience as the unemployment is low.

Outperforming Industries in August

August’s nonfarm payroll report highlights 96,000 job additions in the private sector. There has been a substantial addition in the finance, healthcare, and professional and business services industries.

The financial industry created 15,000 jobs in August due to the addition of employees in the insurance carries and related activities. The healthcare industry added 24,000 jobs on an uptrend in ambulatory health care services and hospital activities.

An addition of 37,000 jobs took place in professional and business services industry as well. There has been a notable rise of employment in computer systems design industry and increase in recruitment of management for various companies and enterprises.

5 Stocks to Buy Now

As the addition of jobs in the aforesaid industries indicate that businesses in such areas are expanding, we have shortlisted five stocks from those industries that flaunt a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Genworth Financial, Inc. GNW is a publicly traded company that helps people secure their and families lives, and plan their futures. Genworth Financial’s expected earnings growth rate for the current year is 211.1%. The Zacks Consensus Estimate for current-year earnings has improved 15.5% over the past 60 days.

Hallmark Financial Services, Inc. HALL is a publicly traded company that engages in the sale of property and casualty insurance products. Hallmark Financial’s expected earnings growth rate for the current year is 41.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the past 60 days.

Medpace Holdings, Inc. MEDP is a publicly tradedfull-service clinical contract research organization which provides Phase I-IV clinical development services to the biotechnology, pharmaceutical and medical device industries. Medpace’s expected earnings growth rate for the current year is 12.4%. The Zacks Consensus Estimate for current-year earnings has improved 10.2% over the past 60 days.

Fiserv, Inc. FISV is a publicly traded company that provides information management systems and services to financial and insurance industries. Fiserv’s expected earnings growth rate for the current year is 21.3%. The Zacks Consensus Estimate for current-year earnings has improved 6.2% over the past 60 days.

FTI Consulting, Inc. FCN is a publicly traded business advisory firm intended to helping organizations manage change, mitigate risk and resolve disputes. FTI Consulting’s expected earnings growth rate for the current year is 35.5%. The Zacks Consensus Estimate for current-year earnings has improved 23.5% over the past 60 days.

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