So far in 2018, the U.S. staffing industry has benefited from promising developments in the broader economy.
Trump administration’s business-friendly approach, including tax cuts and higher government have been driving growth of the economy. Post the 2017 tax reform, corporate spending has increased significantly with U.S. companies pouring tax savings into growth initiatives. This has kept manufacturing and non-manufacturing activities in good shape, thus supporting additional hiring and wage gains and aiding growth of the staffing industry. The labor market has been witnessing record low unemployment levels and strong job additions since the beginning of the year.
Per a report by statista, U.S. staffing industry has grown steadily over the past few years. From $119.4 billion in revenues in 2013, the industry’s top line has grown to $142.8 billion in 2017.
Given this encouraging backdrop, let’s take a look at how the staffing industry will perform in 2019.
What’s in Store for 2019?
The factors that have benefited the staffing industry in 2018 are expected to remain in place in 2019 as well.
Per an industry forecast by Staffing Industry Analysts (SIA), global staffing revenues will grow 6% in both 2018 and 2019. SIA predicts the U.S. temporary staffing market to go up 4% in 2018 and 3% in 2019. The forecast indicates decent growth, considering the fact that the expansion cycle has reached maturity.
Additionally, a report by statista claims that the U.S. staffing industry revenues are anticipated to be around $148.3 billion in 2018 and exceed $150 billion in 2019.
The Zacks Staffing industry currently carries a Zacks Industry Rank #54, which places it in the top 22% of more than 250 Zacks industries and indicates solid near-term growth prospects.
5 Staffing Picks for 2019
With indications that the staffing industry will continue to grow through 2019, adding staffing stocks looks like a smart move to enhance your portfolio in the near future.
With the help of the Zacks Stock Screener, we have zeroed in on five promising stocks from the staffing suite, which have a favorable Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of A or B. These stocks also have a solid expected earnings growth rate for 2019 and have witnessed upward earnings estimate revisions in the past 60 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best investment opportunities for investors. Thus, the selected companies appear to be compelling investment propositions at the moment.
Insperity, Inc. (NYSE:NSP) is a provider of human resources (HR) and business solutions. Shares of the company have gained 56.9% year to date. Currently, it carries a Zacks Rank #1 and has a VGM Score of B. It has a market capitalization of $3.84 billion.
Price and Consensus: NSP
The company’s expected earnings growth rate for 2019 is 15%. The Zacks Consensus Estimate for 2019 has increased 7.8% in the past 60 days.
Heidrick & Struggles International, Inc. (NASDAQ:HSII) is a provider of executive search, culture shaping, and leadership consulting services.Shares of the company have gained 27.5% year to date. Currently, it carries a Zacks Rank #1 and has a VGM Score of B. It has a market capitalization of $592.08 million.
Price and Consensus: HSII
The company’s expected earnings growth rate for 2019 is 2.5%. The Zacks Consensus Estimate for 2019 has increased 15.1% in the past 60 days.
Robert Half International Inc. (NYSE:RHI) provides staffing and risk consulting services. Shares of the company have gained 0.4% year to date. Currently, it carries a Zacks Rank #2 and has a VGM Score of A. It has a market capitalization of $6.85 billion.
Price and Consensus: RHI
The company’s expected earnings growth rate for 2019 is 10.8%. The Zacks Consensus Estimate for 2019 has increased 2.3% in the past 60 days.
Korn/Ferry International (NYSE:KFY) provides talent management solutions worldwide. Shares of the company have declined 3.1% year to date. Currently, it carries a Zacks Rank #2 and has a VGM Score of A. It has a market capitalization of $2.30 billion.
Price and Consensus: KFY
The company’s expected earnings growth rate for 2019 is 23.5%. The Zacks Consensus Estimate for 2019 has increased 1.8% in the past 60 days.
BG Staffing, Inc. (NYSE:BGSF) is a provider of temporary staffing services. Shares of the company have gained 29.8% year to date. Currently, it carries a Zacks Rank #2 and has a VGM Score of A. It has a market capitalization of $220.22 million.
Price and Consensus: BGSF
The company’s expected earnings growth rate for 2019 is 12.4%. The Zacks Consensus Estimate for 2019 has increased 3.8% in the past 60 days.
In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?
These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year ahead. Be among the first to see the new Zacks Top 10 Stocks >>
Korn/Ferry International (KFY): Free Stock Analysis Report
Heidrick & Struggles International, Inc. (HSII): Free Stock Analysis Report
Insperity, Inc. (NSP): Free Stock Analysis Report
BG Staffing Inc (BGSF): Free Stock Analysis Report
Robert Half International Inc. (RHI): Free Stock Analysis Report
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