Why Investors Should Retain Robert Half (RHI) Stock Now
Robert Half International Inc. RHI is benefiting from its wholly-owned subsidiary, Protiviti, as well as software initiatives.
RHI has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth. The stock has gained 5.6% in the past month, outperforming the 2.7% rally of the industry it belongs to.
Robert Half Inc. Price
Robert Half Inc. price | Robert Half Inc. Quote
Factors That Augur Well
Protiviti, the company’s wholly-owned subsidiary, through which it offers internal audit, technology consulting, digital transformation, legal consulting, and risk and compliance consulting services, is in good shape. Protiviti revenues increased 6.9% year over year in 2022.
Robert Half has been utilizing a major share of its capital expenditure on investments in software initiatives and technology infrastructure. Further, the company continues to invest in digital technology initiatives designed to enhance the service offerings to both clients and candidates. Technology investments, a broad and deep client, as well as candidate database, and network scope and global scale are likely to drive long-term growth for the company.
Commitment to shareholder returns makes Robert Half a reliable way for investors to compound wealth over the long term. In 2022, 2021 and 2020, it paid $189.3 million, $170.6 million and $155.9 million as dividends and repurchased shares worth $319.9 million, $287.7 million and $277.5 million, respectively. Such initiatives not only instill investors’ confidence but also positively impact the company's earnings.
A Risk
Robert Half’s current ratio (a measure of liquidity) stood at 1.86 at the end of second-quarter 2023, lower than the prior quarter’s 1.96. The gradually decreasing current ratio does not bode well.
Zacks Rank and Stocks to Consider
Robert Half currently carries a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
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Automatic Data ADP currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
Broadridge BR currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings indicates growth of 7.2% and 8.8%, respectively.
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