3 Stocks Boosted By Latest Jobs Numbers

Credit Suisse said the March U.S. labor data indicates continued jobs trends momentum, is positive for The Ultimate Software Group, Inc.

, Paycom Software Inc

and Cornerstone OnDemand, Inc.

. "We continue to view a strengthening U.S. labor market as a tailwind for US-focused HCM vendors, including ULTI (Outperform, TP $215), PAYC (Outperform, TP $43), and CSOD (Outperform, TP $31), as the number of addressable seats (i.e. employees) increases," analysts including Michael Nemeroff wrote in a note to clients. The March employment report indicates that U.S. employers added +215K jobs (+195K private) with a negligible downward revision of -1K, which is ahead of prior consensus expectations of +205K (+190K), the analyst said. "While the unemployment rate increased to 5.0% (from 4.9% in Feb.), we note that the participation rate and employment-to-population ratio both increased sequentially (to 63.0% and 59.9%, respectively)," Nemeroff said. "In addition, the three-month and 12-month payroll averages remain above the +200K trend line at +209K and +234K, respectively." The analyst also noted that Alphabet Inc

's launch of Fiber Phone could bode well for Ooma Inc

's products. "We believe GOOGL's entry into the home communications market validates our thesis that there is a secular shift to internet-based solutions from traditional landlines as well as the importance of landlines to many households (particularly families), which could bode well for OOMA's (Outperform, TP $12) Telo products," the analyst noted.