U.S. markets open in 6 hours
  • S&P Futures

    4,612.50
    -42.25 (-0.91%)
     
  • Dow Futures

    35,604.00
    -192.00 (-0.54%)
     
  • Nasdaq Futures

    15,341.75
    -254.00 (-1.63%)
     
  • Russell 2000 Futures

    2,139.40
    -18.30 (-0.85%)
     
  • Crude Oil

    85.28
    +1.46 (+1.74%)
     
  • Gold

    1,815.60
    -0.90 (-0.05%)
     
  • Silver

    23.00
    +0.08 (+0.36%)
     
  • EUR/USD

    1.1408
    -0.0003 (-0.02%)
     
  • 10-Yr Bond

    1.7720
    0.0000 (0.00%)
     
  • Vix

    21.22
    +0.91 (+4.48%)
     
  • GBP/USD

    1.3647
    +0.0000 (+0.00%)
     
  • USD/JPY

    114.7180
    +0.1380 (+0.12%)
     
  • BTC-USD

    41,872.83
    -799.68 (-1.87%)
     
  • CMC Crypto 200

    1,003.07
    -22.66 (-2.21%)
     
  • FTSE 100

    7,567.86
    -43.37 (-0.57%)
     
  • Nikkei 225

    28,257.25
    -76.27 (-0.27%)
     

The Zacks Analyst Blog Highlights: Robert Half, Kforce and Cross Country Healthcare

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·7 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

For Immediate Release

Chicago, IL – December 2, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Robert Half International, Inc. RHI, Kforce, Inc. KFRC and Cross Country Healthcare, Inc. CCRN.

Here are highlights from Wednesday’s Analyst Blog:  

 

Profit Off the Recruiting Boom with These 3 Zacks Rank #1 Stocks

The labor market has experienced an unprecedented ride over the past eighteen months. Over 22 million jobs were lost between March and April of 2020 when the country was shutdown due to the pandemic. As we can see below, just a year and a half later more than 18 million jobs have been added back - including over 500,000 this past October.

Today’s ADP private payroll report showed the U.S. economy added 534,000 jobs in November. The official non-farm payrolls report from the Bureau of Labor Statistics is due out Friday morning.

While the jobs recovery has been one of the strongest in history, keen investors will note that this still leaves more than 4 million jobs (excluding the upcoming November report) just to get back to pre-pandemic levels.

We can view the unemployment rate as another confirmation indicator. After skyrocketing to 14.7% in April of last year, the unemployment rate has plunged back down to its lowest level since the start of the pandemic, hitting 4.6% in October.

People are clearly going back to work. Investors should also note the steep drop in initial claims for unemployment benefits, which have declined 97% from their peak last year.

A nationwide labor shortage is making it more difficult for companies to locate and hire top talent. A recent study performed in August of this year by the Society for Human Resource Management (SHRM) found that nearly 90% of the 1,200 U.S. employers surveyed said they were struggling to fill open positions over the summer.

As investors it is our job to decipher these types of economic trends and determine how we can best take advantage via the equity markets. In this case, the staffing and recruiting space has witnessed a drastic increase in revenues as firms that are hiring are relying upon staffing firms more heavily than ever before.

The Zacks Staffing Firms industry group contains many recruitment firms and is currently ranked in the top 9% out of all 254 groups. This industry group has handily outperformed the market this year with a 43.9% return. Historical research has shown that nearly half of a stock’s future price appreciation can be attributed to its industry grouping.

Targeting firms in top industry groups will help guide you to individual stocks that are outperforming. Let’s take a look at three Zacks #1 ranked (Strong Buy) stocks that are within the Staffing Firms industry group and are benefiting from the recruiting boom.

Robert Half International

Robert Half International is a provider of specialized staffing and risk consulting services, assisting clients and job candidates in their recruitment and employment needs. The company was founded in 1948 and is headquartered in Menlo Park, CA.

RHI is taking advantage of strength in Protiviti, its subsidiary through which it offers risk consulting, internal auditing and information technology consulting services. Protiviti is currently producing double-digit growth in margins and revenue.

RHI has illustrated a remarkable history of earnings surprises, beating estimates in each of the last six quarters. The company last reported EPS of $1.53 for the quarter ending in September, a 9.3% surprise over consensus. Over the last four quarters, RHI has delivered an average earnings surprise of 20.5%, which has helped the stock advance over 80% on the year.

Analysts covering Robert Half International are in agreement regarding full-year earnings as five separate analysts have revised their estimates upward by an average of 5.38% over the last 60 days. The current Zacks Consensus Estimate for the year stands at EPS of $5.29, rendering a 96% growth rate compared to last year. RHI is next scheduled for its quarterly earnings announcement on January 27th, 2022.

Kforce

Kforce is a full-service staffing firm that provides flexible and permanent staffing solutions for organizations and career management for individuals through its website, kforce.com. Through its online presence, KFRC offers various services including online resumes and job postings, interactive interviews, as well as job placements and career management strategies.

KFRC has an impressive history of earnings surprises, exceeding estimates in six out of the last seven quarters. The stock has climbed nearly 85% this year and most recently reported EPS last month of $0.96, a 10.3% surprise over consensus.

Analysts covering the firm have revised earnings estimates upward for both this year (+10.25%) as well as 2022 (+12.9%). Positive earnings estimate revision activity can give investors a leg up during earnings season.

The Zacks Consensus Estimate for the current year stands at EPS of $3.55, translating to 35.5% growth over 2020. KFRC is due to report quarterly earnings on February 14th, 2022.

Cross Country Healthcare

Cross Country Healthcare provides innovative healthcare workforce solutions and staffing services. Headquartered in Boca Raton, FL, CCRN has built a diverse client base including hospitals, physician groups, ambulatory-care centers, nursing facilities, government organizations, as well as both public and charter schools.

CCRN has put together a string of positive earnings surprises, exceeding estimates in each of the last eleven quarters. The company has delivered an average surprise of nearly 75% over the last four quarters, which has aided the stock’s incredible 196% return this year.

Cross Country Healthcare most recently reported EPS for the quarter ending in September of $0.61, matching its four-quarter 75% average surprise over estimates. Analysts have been consistently revising their full-year earnings estimates upward, with the current Zacks Consensus Estimate for 2021 sitting at $2.52 – a staggering 447.8% growth rate over 2020.

What the Zacks Model Unveils

Our proprietary model is predicting an earnings beat for CCRH for the current quarter. The Zacks ESP (Earnings Surprise Prediction) seeks to find companies that have recently seen positive earnings estimate revision activity. When combining a Zacks #3 ranking or better with a positive ESP, stocks produced a positive earnings surprise 70% of the time.

As a Zacks #1 ranked (Strong Buy) stock and with a current ESP of +26.36%, CCRH is primed for yet another positive earnings surprise. The company is next scheduled to report earnings on February 23rd, 2022.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com                                      

https://www.zacks.com                                          

 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Robert Half International Inc. (RHI) : Free Stock Analysis Report
 
Kforce, Inc. (KFRC) : Free Stock Analysis Report
 
Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research