The latest initial claims data reveals that jobless claims for the week ended Dec 8 declined to the lowest since September, returning to hover near a 49-year low. The advance figure for seasonally adjusted initial claims came in at 206,000, down 27,000 from the previous week’s revised level and much below the consensus estimate of 227,000.
The four-week moving average that is considered a better measure of labor market trends, as it evens out the sharp fluctuations in weekly reports, declined 3,750 to 224,750.
Labor Market Remains Firm
The latest initial claims data eases concern about a slowdown in the labor market and economy. In fact, this data when considered along with other recent staffing data offers evidence that the labor market is still in a tight shape.
Per the report from the Bureau of Labor Statistics earlier this month, the economy added 155,000 jobs in November on the back of strong performances from healthcare, manufacturing, and transportation and warehousing.
Average hourly earnings in November increased 6 cents to $27.35, registering 3.1% year-over-year increase. Unemployment of 3.7% continues to remain near a 49-year low level. The Conference Board’s Employment Trends Index was at 110.41 in November, registering year-over-year growth of 4.4%.
At October end, job openings were 7.1 million, the highest level since the Department of Labor started recording data on this metric.
A strong economy leading to robust manufacturing and non-manufacturing activities, and higher corporate spending post the tax reform continue to drive the staffing industry.
Growth Expected Through 2019
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.
Staffing Stocks Should be an Investment Choice
With indications that the staffing market will keep on growing through 2019, staffing stocks should appreciate in the near to mid-term.
Below, we have mentioned four staffing stocks that are currently benefiting from sustained growth in the industry. These stocks offer high yields along with good growth prospects.
Our Growth 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. Our research shows that stocks with Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) offer the best investment opportunities in the growth investing space.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Heidrick & Struggles International, Inc. (NASDAQ:HSII) , a provider of executive search, culture shaping, and leadership consulting services in the Americas and internationally, currently sports a Zacks Rank #1 and has a Growth Score of A. This stock has gained 37.8% year to date.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current year EPS has improved 18.4% in the past 60 days.
Insperity Inc. (NYSE:NSP) , engaged in providing human resources and business solutions in the United States, currently carries a Zacks Rank #1 and has a Growth Score of B. The stock has rallied a massive 69.1% year to date.
The company’s expected earnings growth rate for the current year is 51.4%. The Zacks Consensus Estimate for current year EPS has improved 5.4% in the past 60 days.
BG Staffing, Inc. (NYSE:BGSF) , a provider of temporary staffing services across a diverse set of industries, carries a Zacks Rank #2 and has a Growth Score of A. The stock has surged 39.2% year to date.
The company’s expected earnings growth rate for the current year is 68.3%. The Zacks Consensus Estimate for current year EPS has improved 4.3% in the past 60 days.
Robert Half International Inc. (NYSE:RHI) , a provider of staffing and risk consulting services in North America, South America, Europe, Asia, and Australia, also carries a Zacks Rank #2 and has a Growth Score of A. This stock has gained 5.1% year to date.
The company’s expected earnings growth rate for the current year is 36.2%. The Zacks Consensus Estimate for current year EPS has improved 2.6% 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 >>
Robert Half International Inc. (RHI): Free Stock Analysis Report
Insperity, Inc. (NSP): Free Stock Analysis Report
Heidrick & Struggles International, Inc. (HSII): Free Stock Analysis Report
BG Staffing Inc (BGSF): Free Stock Analysis Report
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