As America slowly heals from its economic wounds, growing
businesses have found themselves reluctant to rehire positions,
which were once cut to survive the Great Recession.
Unfortunately, that phantom limb created by downsizing can
immobilize businesses otherwise poised to seize new opportunities
in a rebounding economy.
Bridging the gap between immediate personnel needs and lingering
hiring anxiety is the staffing industry. Climbing 14 positions last
week, this sector of 17 companies now sits at a Zacks' Industry
Rank of #57 out of 259 industries. The industry demonstrated 21
positive earnings estimate revisions compared to only 4 negative
revisions, with a respectable average positive earnings per share
(EPS) surprise of +29%.
From white collar to blue collar, the Great Recession has left
skilled candidates filling the ranks of the unemployed. Staffing
companies offer the ability to sort through these ranks for
competent matches without concern for longevity.
Simultaneously putting people back to work and businesses back to
full production could be just the catalyst for recovery.
Each of the following staffing companies have been upgraded this
week to a Zacks Rank #1 (Strong Buy). An upgrade in rank from a Buy
or Hold to a Strong Buy demonstrates that a given stock may be
headed higher following future positive earnings estimate
Investigating this upgrade may provide investment strategies
with additional factors which take into account both the individual
company and the sector as a whole. Both of these stocks also hold a
long-term Zacks "Outperform" rating.
There are many companies in this sector, but these are our
True Blue Inc.
TBI was upgraded to a Zacks Rank #1 (Strong Buy) on July 27 from #3
(Hold). Its next expected earnings report is on October 23, 2013.
True Blue's brands provide general labor, light industrial and
skilled trades services to small to mid-sized businesses in the
construction, warehousing, hospitality, landscaping,
transportation, light manufacturing, retail, wholesale, facilities,
sanitation and aviation industries. In addition to the strength of
the industry, True Blue's integration of the firm -- MDT Personnel
-- earlier this year is complete. Associated costs are no longer
expected to weigh on revenue and the added value is anticipated to
deliver higher profitability.
TBI's most recent quarterly earnings surprise was +24%.
ASGN is a Zacks Rank #1 (Strong Buy). It moved up from a Zacks Rank
#2 (Buy) just last week. This company reports quarterly earnings on
October 23, 2013.
On Assignment, Inc. is a leading nationwide provider of temporary
scientific professionals to laboratories in the biotechnology,
pharmaceutical, food and beverage, chemical and environmental
industries. ASGN counts a full 80% of their business specifically
in the IT sector. This is important. Recent trends in
technology have shifted the focus away from offshore and
consulting-based solutions in favor of in-house options, providing
increased accountability and oversight.
ASGN's most recent quarterly earnings surprise was +14%.
ON ASSIGNMENT (ASGN): Free Stock Analysis
TRUEBLUE INC (TBI): Free Stock Analysis Report
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