As the United States recovers steadily from its highest ever level of unemployment—witnessed in April 2020—the increasing hiring activity amid the economy’s reopening should allow popular staffing and employment services stocks Paychex (NASDAQ:PAYX) and ZipRecruiter (ZIP) to gain significantly. But which of these stocks is a better buy now? Let’s find out.Paychex, Inc. (PAYX) and ZipRecruiter, Inc. (ZIP) are two prominent players in the staffing & employment services industry. PAYX provides comprehensive payroll and integrated human resource and employee benefits outsourcing solutions for small- to medium-sized businesses. ZIP is an online employment marketplace that provides recruiting, job posting, online interviews, candidate screening, application updates and job alerts services.
With declining unemployment rates, rising job opportunities and wage increases as the U.S. labor market improves, companies that deliver staffing and employment services are putting their best efforts into providing efficient services to their clients. Therefore, we think both PAYX and ZIP should benefit from the industry tailwinds.
In terms of their past month’s performance, ZIP is a clear winner with 16.4% gains versus PAYX’s 7.5%. But, which of these stocks is a better pick now? Let’s find out.