Kalkine Media explores staffing stocks amid drop in US job openings

Be the First to Comment Read

Kalkine Media explores staffing stocks amid drop in US job openings

Follow us on Google News:
 Kalkine Media explores staffing stocks amid drop in US job openings
Image source: © Krischam | Megapixl.com

Highlights:

  • ShiftPixy Inc. (NASDAQ: PIXY) reported revenue of US$ 9.7 billion in the quarter that ended August 31, 2022.
  • Cross Country Healthcare Inc. (NASDAQ: CCRN) has a market capitalization of US$ 1.3 billion.
  • HireQuest Inc. (NASDAQ: HQI) paid a dividend of US$ 0.06 per share. 

According to the US Bureau of Labor Statistics report on Tuesday, October 4, the number of job openings slumped 10 per cent in August, which showed that the labor market is cooling off due to the heat of the rate hikes by the central bank to tame the rising inflation.

The report mentioned that although hiring climbed slightly, the total separations surged by 182,000. Employees who quit their jobs voluntarily jumped by 100,000 for the month to 4.16 million.

Usually, the job market has been a catalyst for inflation, as the outsized demand for the sparse labor pool has driven up wages steeply.

Amid all these developments, let us explore five staffing stocks curated by Kalkine Media and see their performances in recent quarters:

ShiftPixy Inc. (NASDAQ: PIXY)

ShiftPixy is a company that provides a platform where workers can enrol, profile, and prequalify depending on their work experience for open-shift job opportunities.

The US$ 133.8 million company, ShiftPixy’s next-gen mobile technology, helps hire people seamlessly. The company is headquartered in Irvine, California.

In the quarter that ended August 31, 2022, ShiftPixy reported a revenue of US$ 9.7 billion compared to US$ 9.5 billion in the year-ago quarter.

The Gross profit of the company for the reported quarter was US$ 604,000 versus a gross loss of US$ 447,000 in the year-ago quarter. The total assets of ShiftPixy at the end of the three months on August 31, 2022, were reported at US$ 133.58 million, while in the corresponding quarter in 2021, it was US$ 62.94 million.

Cross Country Healthcare Inc. (NASDAQ: CCRN)

Cross Country Healthcare Inc. provides staffing solutions to healthcare clients, including private and public hospitals, government centers, outpatient clinics, physician practice groups, ambulatory care facilities, etc.

The company has a market capitalization of US$ 1.3 billion. The earnings-per-share (EPS) of the company is 5.27, while its price-to-earnings (P/E) ratio is 5.6.

In the second quarter of fiscal 2022, Cross Country Healthcare posted revenue from services of US$ 753.56 million compared to US$ 331.82 million in the year-ago quarter, which is a 127 per cent jump.

The company’s net income attributable to common stockholders in the June 30, 2022, quarter was US$ 52.9 million, whereas it was US$ 11.54 million in the same quarter a year earlier.

The CCRN stocks had a Relative Strength Index (RSI) of 73.99 per Refinitiv on October 5, 2022. It indicates that the stock could have a stable market condition at the moment.

Kforce Inc. (NASDAQ: KFRC)

Kforce provides staffing solutions to clients in the technology, finance & accounting segments with a nationwide presence.

The US$ 1.306 billion market valuation company. Kforce paid a quarterly dividend of US$ 0.3 per share. It has a dividend yield of 1.945 per cent, and the three-year dividend growth was 13.7 per cent.

Kforce registered a revenue of US$436.5 million for the quarter that ended on June 30, 2022. It was an increase of 8.2 per cent year-over-year (YoY). The company said that its technology revenue soared 23.8 per cent YoY.

Its net income for the second quarter of fiscal 2022 was US$ 26.9 million, or US$1.3 per share, while it was US$ 21.2 million, or US$ 1 per share, in the year-ago quarter.

The KFRC stock surged over 9.49 per cent over the past month while sliding over 18 per cent year-to-date (YTD).

Market capitalization of PIXY, CCRN, KFRC, HQI, HSIISource: ©Kalkine Media®; © Canva Creative Studio via Canva.com

HireQuest Inc. (NASDAQ: HQI)

HireQuest Inc is a US staffing company that provides on-demand and temporary staffing solutions to small and mid-sized businesses. The company’s clients belong to the retail, warehousing, construction, industrial, manufacturing, transportation, and hospitality industries.

HireQuest has a market capitalization of US$ 183.9 million. It distributed a quarterly dividend of US$ 0.06 with a dividend yield of 1.8 per cent. HireQuest has an EPS of 0.79, and the P/E ratio was 16.3 at the time of writing.

The company reported a Q2 2022 revenue growth of 62.8 per cent YoY to US$ 9.3 million, relative to US$ 5.7 million in the prior year period.

HireQuest said its net income in the second quarter of fiscal 2022 continuing operations jumped 74.9 per cent year-over-year to US$ 4.8 million.

It posted an adjusted EBITDA of US $5.9 million in Q2 2022 compared to US$ 4.4 million in the corresponding quarter in 2021.

The HQI stock fell over 34 per cent YTD, while it has surged over 3.33 per cent over the past week.

Heidrick & Struggles International Inc. (NASDAQ: HSII)

Heidrick & Struggles International is a leadership advisory firm that provides consulting services and executive search solutions to businesses across the globe. The Chicago, Illinois-based company operates in the US, Europe, and the Asia Pacific.

The US$ 555.209 million market cap company paid a dividend of US$ 0.15 per share. The company has an EPS of 3.91, while its P/E ratio stands at 7.

Heidrick’s second quarter 2022 net revenue touched US$ 298.7 million, up 14.9 per cent compared to the year-ago quarter at US$ 260 million.

Its operating income also registered an 18 per cent growth at US$ 33.9 million from the corresponding quarter in the previous year.

Heidrick’s net income and adjusted net income in Q2 2022 were US$ 24.1 million, while the diluted and adjusted diluted earnings per share were US$ 1.19.

Over the past week, the HSII stock saw a surge of 7.65 per cent.

Bottom line:

Investing during times of market volatility has become a challenge for investors. The macroeconomic headwinds coupled with the Federal Reserve’s tight monetary policies to quell the fastest inflation in decades have brought about pessimism in the market. A long-term strategy can help traders wade through this bearish market trend without losing money.

One should analyze and study a company’s fundamentals before deciding on a stock.

Disclaimer

Featured Articles