10 Best Staffing Company Stocks To Buy Now
In this article, we will discuss the 10 best staffing company stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Staffing Company Stocks To Buy Now.
The global staffing industry has gone through a significant transformation over recent years with advancements in IoT, artificial intelligence, and data analytics. According to Staffing Industry Analysts, the global staffing industry generated a revenue of $599 billion in 2021, up 21% year over year, and is on track to grow its revenue by 9% in 2022. According to a report by SkyQuest, the global human resource technology market was worth $24 billion in 2021 and is expected to reach a value of roughly $36 billion by 2028, at a compound annual growth rate of 5.8%. According to a survey carried out by SkyQuest, 81% of medium-sized and large-sized businesses reported that they use HR software, and 79% of the respondents reported that HR software has helped them optimize their reviews.
The staffing industry is on track to benefit from secular growth trends, such as the adoption of artificial intelligence and advanced analytics in human resource management, and exhibit strong growth. Investors can cash in on the opportunity and rack up shares of top staffing companies which include Paychex, Inc. (NASDAQ:PAYX), Workday, Inc. (NYSE:WDAY), and Microsoft Corporation (NASDAQ:MSFT) and position themselves to benefit from this secular growth industry.
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Our Methodology
To determine the best staffing company stocks to buy now, we reviewed the global staffing industry and identified key players in the space. We picked companies with strong product pipelines, leading market positions, and attractive growth catalysts. Along with each stock, we have mentioned the hedge fund sentiment, analyst ratings, and top shareholders. We have ranked these stocks according to their popularity among elite investor circles.
Best Staffing Company Stocks To Buy Now
10. Hudson Global, Inc. (NASDAQ:HSON)
Number of Hedge Fund Holders: 4
Hudson Global, Inc. (NASDAQ:HSON) is a leading international provider of professional staffing and recruiting services. The company has operations across North America, Europe, Asia Pacific, and South America. Hudson Global, Inc. (NASDAQ:HSON) has a strong track record of delivering high-quality candidates to clients and has a deep understanding of the global talent market. The company’s innovative staffing solutions and use of technology have helped it to become a leading player in the industry. Hudson Global, Inc. (NASDAQ:HSON) is well-positioned to capitalize on the growing demand for professional staffing services globally.
Hudson Global, Inc. (NASDAQ:HSON) is trading at an attractive valuation and ranks among the best staffing stocks to buy now. As of October 26, the stock has a trailing twelve-month PE ratio of 11.09 and has gained 110% over the past twelve months.
At the close of Q2 2022, 4 hedge funds held stakes in Hudson Global, Inc. (NASDAQ:HSON). The total value of these stakes amounted to $6.1 million. This is compared to 3 positions in the previous quarter with stakes of $7.5 million. As of June 30, Renaissance Technologies is the largest shareholder in Hudson Global, Inc. (NASDAQ:HSON) and has stakes worth $3.1 million in the company.
Some of the best-in-class companies operating in the staffing industry include Paychex, Inc. (NASDAQ:PAYX), Workday, Inc. (NYSE:WDAY), and Microsoft Corporation (NASDAQ:MSFT).
9. HireQuest, Inc. (NASDAQ:HQI)
Number of Hedge Fund Holders: 5
HireQuest, Inc. (NASDAQ:HQI) is a leading provider of on-demand labor and staffing solutions in the United States, with a nationwide network of branches. The company offers a flexible and convenient solution for businesses of all sizes that need skilled workers for a variety of positions, including industrial, commercial, and construction. HireQuest, Inc. (NASDAQ:HQI) has a proven track record of success, with over 20 years of experience and a strong reputation in the industry. The company is well-positioned for continued growth and expansion, with a robust franchise system and a strong management team.
On September 13, EF Hutton analyst Michael Albanese took coverage of HireQuest, Inc. (NASDAQ:HQI) with a Buy rating and a $24 price target. As of October 26, the stock is trading at a PE multiple of 18x and is offering a forward dividend yield of 1.68%.
At the end of Q2 2022, 5 hedge funds were long HireQuest, Inc. (NASDAQ:HQI) and held stakes worth $6.28 million in the company. This is compared to 3 positions in the previous quarter with stakes worth $5.21 million. The hedge fund sentiment for the stock is positive.
Here is what Rhizome Partners had to say about HireQuest, Inc. (NASDAQ:HQI) in its second-quarter 2022 investor letter:
“Our smaller positions in both HireQuest and Cross Country Healthcare are trading around 10 times normalized P/FCF multiples. Both companies have long growth runways and are led by talented CEOs. The ongoing maintenance capital expenditures of both companies are minimal. We keep looking for ways to disprove both investment theses and have a hard time coming up with valid reasons. HireQuest is more cyclical because it’s tied to blue collar temporary staffing. But HireQuest has the unique know-how to acquire staffing companies and convert them into high-performing franchises. HireQuest has consistently paid about 5 times P/FCF multiple for the acquisitions. Adjusting for sales of branches locations to franchisees, the P/FCF multiple falls even further. The current acquisition strategy is better than a greenfield approach as the acquired free cashflow yield is over 20% and HireQuest does not have to compete for market share. We believe the company can grow to five times its current size, with little share-count dilution.”
8. Heidrick & Struggles International, Inc. (NASDAQ:HSII)
Number of Hedge Fund Holders: 13
Heidrick & Struggles International, Inc. (NASDAQ:HSII) is a global provider of executive search, on-demand talent, and leadership consulting services. The company helps its clients build great companies and leaders. The company has a long history of success and a strong track record of creating value for its shareholders. The company's diversified business model and strong global presence justify its inclusion among the best staffing stocks to invest in.
On October 24, Heidrick & Struggles International, Inc. (NASDAQ:HSII) declared a quarterly cash dividend of $0.15 per common share. The dividend is payable on November 18 to shareholders of record at the close of business on November 4. As of October 26, Heidrick & Struggles International, Inc. (NASDAQ:HSII) is trading at a PE multiple of 7x and is awarding investors with a dividend yield of 2.08%.
As of July 28, Barrington analyst Kevin Steinke has a $45 price target and Outperform rating on Heidrick & Struggles International, Inc. (NASDAQ:HSII).
At the close of Q2 2022, 13 hedge funds were bullish on Heidrick & Struggles International, Inc. (NASDAQ:HSII) and held stakes worth $98.3 million in the company. Of those, Renaissance Technologies was the top investor in the company and disclosed a stake of $42.2 million.
7. Trueblue, Inc. (NYSE:TBI)
Number of Hedge Fund Holders: 14
Trueblue, Inc. (NYSE:TBI) is a leading provider of contingent staffing solutions in the United States. The company has a diversified customer base and a large network of branches across the country. Trueblue, Inc. (NYSE:TBI) is trading at bargain levels and offering investors the opportunity to cash in on the weakness. As of October 26, the stock is trading at a PE multiple of 10x. Trueblue, Inc. (NYSE:TBI) is among the best staffing stocks to invest in right now.
On October 24, Trueblue, Inc. (NYSE:TBI) announced earnings for the fiscal third quarter of 2022. The company generated a revenue of $575.72 million and reported earnings per share of $0.63, outperforming Wall Street estimates by $0.03. Shortly after the company's earnings release, Baird analyst Mark Marcon raised his price target on TrueBlue, Inc. (NYSE:TBI) to $28 from $21 and maintained an Outperform rating on the shares.
At the end of Q2 2022, 14 hedge funds disclosed ownership of stakes in Trueblue, Inc. (NYSE:TBI). These funds held collective stakes of $61.6 million in the company. As of June 30, Pzena Investment Management is the leading shareholder in Trueblue, Inc. (NYSE:TBI) and has stakes worth $32 million in the company.
In addition to Trueblue, Inc. (NYSE:TBI), investors looking to gain exposure to the staffing industry can also explore Paychex, Inc. (NASDAQ:PAYX), Workday, Inc. (NYSE:WDAY), and Microsoft Corporation (NASDAQ:MSFT).
6. ASGN Incorporated (NYSE:ASGN)
Number of Hedge Fund Holders: 19
ASGN Incorporated (NYSE:ASGN) is a leading provider of in-demand, skilled professionals in the technology, digital, and creative fields for both commercial and government sectors. With over 35 years of experience, ASGN Incorporated (NYSE:ASGN) has a proven track record of connecting talented professionals with great companies and has made itself a trusted partner for both job seekers and businesses. The stock is ranked among the best staffing stocks to buy now.
This July, BMO Capital analyst Jeffrey Silber raised his price target on ASGN Incorporated (NYSE:ASGN) to $105 from $94 and maintained a Market Perform rating on the shares. On August 8, BofA analyst Heather Balsky raised her price target on ASGN Incorporated (NYSE:ASGN) to $122 from $120 and reiterated a Buy rating on the shares.
At the end of Q2 2022, 19 hedge funds were long ASGN Incorporated (NYSE:ASGN) and held stakes worth $62.5 million in the company. This is compared to 12 positions in the previous quarter with stakes of $40.1 million. The hedge fund sentiment for the stock is positive. As of June 30, AQR Capital Management is the most prominent investor in ASGN Incorporated (NYSE:ASGN) and has a stake of $13.2 million in the company.
Here is what Baron Funds had to say about ASGN Incorporated (NYSE:ASGN) in its second-quarter 2022 investor letter:
“ASGN Incorporated (NYSE:ASGN) is a leading provider of IT staffing and consulting services. We expect continued robust demand for ASGN’s solutions given its focus on staffing areas with strong secular growth, chronic shortages of skilled IT workers, and the ongoing digital transformation of U.S. businesses. ASGN is better insulated from economic headwinds than traditional staffing providers given its significant exposure to more stable, counter-cyclical government work and the mission-critical nature of its IT infrastructure work and longer-term consulting engagements.
Management is not seeing any change in tone from its clients, demand remains strong, and pipeline growth is still accelerating. Wage inflation is being offset by higher billing rates, which are being successfully passed through to customers. ASGN is rapidly expanding its solution capabilities, which in turn expands the scope of work for which it can compete and presents new cross-selling opportunities. The company is tracking ahead of its three-year $6 billion revenue target (including $4.9 billion organic revenue growth) which was set just this past September.
We believe investors do not appreciate ASGN’s differentiated positioning and remain optimistic about the outlook for the company. Trading at around 8.5 times 2023 adjusted cash flow, we think the shares are incredibly cheap.”
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Disclosure: None. 10 Best Staffing Company Stocks To Buy Now is originally published on Insider Monkey.
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