Kalkine Media selects five US staffing stocks to watch in September

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Kalkine Media selects five US staffing stocks to watch in September

 Kalkine Media selects five US staffing stocks to watch in September
Image source: © Solarseven | Megapixl.com

Highlights:

  • Workday, Inc. has a market cap of US$ 43.2 billion.
  • HireQuest, Inc. pays a quarterly dividend of US$ 0.06 per share.
  • CCRN stock has surged by over 38 per cent in the past six months. 

The filings by US workers for unemployment benefits have dropped for four weeks on the trot as per the latest labor department’s report. It shows that the US job market is strong but is cooling from earlier this year.

On the other hand, Federal Reserve officials had said that the continuous interest rate hikes to contain inflation could weaken the US job market. Still, the labor department report maintained that in July, there were two jobs for every one unemployed worker in the US.

Amid all these developments, we look at five staffing companies- Workday, Inc. (NASDAQ: WDAY), HireQuest, Inc. (NASDAQ: HQI), Cross Country Healthcare, Inc. (NASDAQ: CCRN), Kforce, Inc. (NASDAQ: KFRC), Robert Half International Inc. (NYSE: RHI), picked by Kalkine Media® and track their performances:

Workday, Inc. (NASDAQ: WDAY)

Workday, Inc. is a US staffing company that offers software for on-demand financial management, student information systems, human capital management, etc.

The US$ 43.2 billion market cap company reported total revenue of US$ 1.54 billion in Q2 2023, a growth of 21.9 per cent year-over-year (YoY).

The company reported that its subscription revenue of US$ 1.37 billion for the reported Q2 also grew by 22.8 per cent YoY.

An operating cash flow was US$ 114.4 million in Q2 2022 versus US$ 198.5 million in the previous year. WDAY stock has steadily increased by 0.63 per cent over the past month.  

Meanwhile, Workday raised its fiscal 2023 subscription revenue from US$ 5.537 billion to US$ 5.557 billion, which will be a 22 per cent YoY growth.

HireQuest, Inc. (DE) (NASDAQ: HQI)

HireQuest is a US staffing company that provides on-demand temporary staff to small and mid-sized enterprises. Its clients range from retail, warehousing, construction, transportation, industrial, manufacturing, and hospitality industries.

The US$ 201.6 million market valuation company has a P/E (price-to-earnings) ratio of 18.47. The company announced a quarterly dividend of US$ 0.06 per share, slated to be paid to shareholders on September 15, 2022.

The HQI stock has increased by 1.67 per cent in the past week. In its second quarter 2022 results, HireQuest posted a revenue of US$ 9.3 million, a 62.8 per cent increase YoY.

The company also mentioned that its Q2 2022 net income from continuing operations grew 74.9 on a yearly basis to US$ 4.8 million.

As for adjusted EBITDA in the reported quarter (Q2 2022), it was US$ 5.9 million relative to US$ 4.4 million in the year-ago quarter.

Cross Country Healthcare, Inc. (NASDAQ: CCRN)

Cross Country Healthcare provides staffing solutions to public and private hospitals, outpatient clinics, government units, physician practice groups, etc. Apart from the staffing, the US$ 1.019 billion market cap company also has two other business segments-physician staffing and search.

However, most of its revenue comes from staffing and is generated mostly in the US. The CCRN stock surged by over 38 per cent in the past six months. Over the past month, it has increased by about 22 per cent.

Last week, Cross Country Healthcare launched a developed digital platform to aid healthcare professionals in connecting with potential and relevant job opportunities.

In its financial results for the second quarter of 2022, Cross Country Healthcare posted a revenue of US$ 753.6 million. Its diluted EPS for the quarter was US$ 1.4.

It said its net income attributable to common stockholders in Q2 2022 was US$ 52.9 million versus US$ 11.5 million in the prior year.

Market capitalization of WDAY, HQI, CCRN, KFRC, RHI,Source: ©Kalkine Media®; © Canva via

Kforce, Inc. (NASDAQ: KFRC)

Kforce offers technical and professional staffing solutions to its clients. It mainly operates three business segments-technology, finance & accounting, and government solutions.

The company posted a Q2 2022 revenue of US$ 436.5 million, while the technology revenue leapfrogged 24 per cent YoY.

For the quarter that ended June 2022, Kforce earned a net income of US$ 26.9 million or US$ 1.3 per share. In the corresponding quarter of the previous year, its net income was US$ 21.2 million or US$ 1 per share.

The company reportedly returned US$ 15.4 million in capital to its shareholders, of which US$ 9.3 million was as share repurchases and US$ 6.1 million in dividends.

The US$ 1.3 billion market cap company, Kforce, announced a quarterly dividend of US$ 0.3, payable on September 30, 2022.

Robert Half International Inc. (NYSE: RHI)

Robert Half offers permanent and temporary staffing solutions to finance, accounting, and technology corporations. Among the largest global staffing solutions provider, it was founded in 1948 and had its headquarters in Menlo Park, California.

The US$ 8.9 billion market valuation company announced a quarterly dividend of US$ 0.43.

Although RHI stock fell below 26 per cent year-to-date (YTD), the stock has seen a steady rise of over three per cent in the past week.

In quarter two of 2022, Robert Half International’s net income was US$ 176 million. Its revenue for the quarter that ended June 30, 2022, was US$ 1.9 billion. In the previous year’s second quarter, it posted a net income of US$ 149 million, while the revenue was US$ 1.6 billion.

Bottom line

The above-discussed staffing stocks have done well in recent quarters. However, investors should also consider other factors before deciding, as the market has continued to be shaky since the start of 2022. Investing in a volatile and bearish market trend can be risky and uncertain. Hence, a long-term strategy could be an option to sail through turbulent market conditions.

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