This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top 4 Staffing Stocks for an Improving Economy

Kelly Services

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Kelly Services (KELYA - Get Report) got a powerful 10% lift from Friday's jobs report. That's only a mild salve in the wound of investors that had seen the stock fall nearly 20% the day before. Kelly had just delivered quarterly results that reflect a still-sobering job market. Operating income fell 25% from a year earlier. And EPS would have been 29 cents were it not for a one-time tax gain, trailing the 42-cent consensus forecast.

At this point in the economic cycle, this is a company in transition. Kelly has seen its revenue mix shift in recent years towards temporary staffing, which carries slim profit margins. The company's permanent placement segment carries much firmer margins. The good news: companies that had been heavily relying on temps are likely to shift their focus back to permanent employment as the broader economy strengthens.

Of all the staffing stocks, this may be the best bargain, trading for less than its $18 tangible book value. The dowdy valuation may be the result of overly cautious management guidance. Management said earlier this week that sales in the current quarter will rise only modestly from a year ago. That forecast was issued before Friday's stunning employment surprise.

In all likelihood, Kelly Services is positioned to meet or even exceed their current forecast. For long-term investors, it's worth noting that shares of Kelly Services trade for half the levels seen five years ago.

Kelly shows up on a list of 8 Stocks With Biggest Upside in Market Rebound.
4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ASGN $38.82 0.00%
KELYA $15.58 0.00%
MAN $85.52 0.00%
RHI $52.84 0.00%
AAPL $112.12 0.00%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs