Improving Economy Improves Outlook for Staffing Industry Stocks
There's been a nice, recent, one-two combination of positive news for the American economy — in that gross domestic product rose as unemployment fell.
Following up those developments was a report from the Department of Commerce, that American exports were at a record level in October.
Those are all bullish developments for the $100 billion staffing and outsourcing industry in the United States and publicly-traded companies such as Korn/Ferry International (NYSE: KFY), Team Health Holdings (NYSE: TMH), Kelly Services (NASDAQ: KELYA), TrueBlue (NYSE: TBI), and Labor SMART (OTC: LTNC).
A previous article on Benzinga reviewed how the staffing and outservicing sector is prospering from the evolution of the American economy.
The fall in unemployment, along with the increase in gross domestic product, is positive for the stocks in the industry. American businesses looking to hire more are now favoring temporary workers. The Affordable Care Act, or ObamaCare, requires firms with more than 50 employees provide expensive health insurance to those working more than 30 hours a week.
As a result, companies are utilizing the goods and services of the staffing industry. That is particularly true for those in the $29 billion demand labor group, such as TrueBlue and Labor SMART. TrueBlue is up more than 50 percent for 2013. Labor SMART just posted record revenues again. Revenue growth is strong for TrueBlue, too, as its earnings per share are up more than 30 percent on a quarterly basis.
That should lead to continuing gains for Kelly Services, TrueBlue, Team Health, Labor SMART, Korn/Ferry International and others in the staffing and outsourcing services industry.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.