A wise investment decision involves buying well-performing stocks at the right time and selling those that are at risk. A rise in share price and strong fundamentals indicate a stock’s bullish run.
Robert Half International Inc. RHI is a staffing stock that has performed well in the past year and has the potential to sustain the momentum, going forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes Robert Half an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Robert Half’s shares have returned 9.2%, against the industry’s decline of 8.4%.
Solid Rank & VGM Score: Robert Half has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here .
Northward Estimate Revisions: Five estimates for the current year moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2018 moved up 2.6%.
Positive Earnings Surprise History: Robert Half has an impressive earnings surprise history. The company outpaced the consensus mark in each of the trailing four quarters, delivering a positive average earnings surprise of 5.5%.
Robert Half International Inc. Price and EPS Surprise
Robert Half International Inc. Price and EPS Surprise | Robert Half International Inc. Quote
Strong Growth Prospects: The Zacks Consensus Estimate for 2018 earnings is currently pegged at $3.54, reflecting year-over-year growth of 36.2%. Moreover, earnings are expected to register 10.8% growth in 2019. The stock has long-term expected earnings per share growth rate of 13.3%.
Growth Factors: Robert Half is gaining momentum on the back of a strong economy, which is facilitating robust manufacturing and non-manufacturing activities as well as higher corporate spending post the tax reform.
The company posted 7.7% year-over-year increase in U.S. staffing revenues in the third quarter of 2018. Robert Half’s international revenues are being driven by increasing demand for professional staffing services. The company’s non-U.S. staffing revenues improved 12.1% in the last reported quarter. Protiviti, the company’s subsidiary through which it offers risk consulting, internal audit and information technology consulting services, is currently a double-digit and revenue performer. Protiviti revenues surged 38.3% in the last reported quarter.
Robert Half has been utilizing a significant chunk of the capital expenditures as investments toward software initiatives and technology infrastructure, as they offer growth opportunities. Major software initiatives include upgrades to enterprise resource planning applications and the implementation of a global, cloud-based customer relationship management application. Digital technology initiatives are designed to enhance the service offerings to clients and candidates.
Other Stocks to Consider
A few other top-ranked stocks in the Zacks Business Services sector are General Finance Corporation GFN, Heidrick & Struggles International, Inc. HSII and WNS (Holdings) Limited WNS, each sporting a Zacks Rank #1.
The long-term expected EPS (three to five years) growth rate for General Finance, Heidrick & Struggles and WNS is 11%, 13.5%, and 12.5%, respectively.
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