E Is Now A Good Time To Invest In Staffing Stocks?

The staffing industry has been one of the markets most affected by COVID-19. Companies have laid-off workers while others have completely shut their businesses. This means that fewer employment opportunities are being created while more people file for unemployment claims. 

Analysts are predicting a high single-digit unemployment rate in the US by the end of the year. This will be a significant drop from 13.3% for May. The non-farm payrolls are still coming in millions on a monthly basis, which will help bring down the jobless claims.

As such, the market has taken a hit. Nonetheless, this could yet be the best time to invest in staffing stocks because once the world overcomes the adverse effects of COVID-19, an increase in employment opportunities will boost the industry overall.

In order to cope with the coronavirus pandemic, workforce and talent management companies have adapted to new technologies to facilitate recruitment processes. Digital communication applications like Microsoft Corporation’s (MSFT) Skype, Alphabet Inc’s (GOOG) Hangouts, and market-disrupting Zoom by Zoom VIdeo Communications (ZM) have proven their worth.

Online recruitment platforms have also experienced a smoother period since they found it easier to adapt to countrywide lockdowns across the globe. Other businesses have opted to outsource managed workforce resources in a bid to cut costs. But despite all these drawbacks, there are some staffing stocks out there that provide compelling opportunities for those looking to invest in aggressive growth stocks. Here are a few to check out in the coming days.

Insperity Inc. (NSP) is the most promising in terms of growth prospects. This company currently trades a trailing 12-month P/E ratio of 18.36. This valuation improves slightly when projected 12-month earnings are factored in, valuing the stock at 17.45 times. However, when we look further forward, the PEG ratio (5-years expected), which factors the expected earnings growth for the next five years, values the stock at an incredible 1.16 times.

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor does ...

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