11 Best Human Resources Stocks To Buy Today

Published on July 28, 2023 at 1:18 am by Hamna Asim in Hedge Funds, News

In this article, we discuss 11 best human resources stocks to buy. If you want to skip our detailed discussion on the human resources industry, head directly to 5 Best Human Resources Stocks To Buy Now.

Over the past two decades, the staffing industry has seen a rapid change. Gone are the days of aggressively searching newspapers and paper-postings to find employment opportunities. With stratospheric adoption of technology, human resource processes have drastically changed. Given this metamorphosis, businesses now face an unprecedented set of opportunities and challenges. Another major post pandemic change has been the demand for greater work flexibility by employers and employees. Following this, there is a strong expectation for freelance work opportunities to increase. Over the years, freelance platforms have presented a competitive ecosystem where businesses can attract candidates better suited to their needs. Furthermore, as remote work seems to be increasing, experts expect the market for staffing solutions to grow in accordance. With firms looking to outsource more human resource related affairs, competition is only expected to grow in the staffing sector.

Don’t Miss: 12 Best Staffing Company Stocks To Buy Now

Another major development has been the inclusion of artificial intelligence in various professions. With companies such as Oracle working on developing AI to enhance innovation in business, McKinsey expects staffing companies to take a similar approach by incorporating AI in their cloud-based human resource platforms. A survey by Gartner reported that while only 17% of total staffing companies used AI in 2019, the percentage was set to increase to over 30% by the end of 2022. Although AI can be incorporated in various staffing procedures, it presents a series of challenges as well. The biggest challenge would be the funding costs for development and integration of AI in processes. Safety, security, and privacy are other concerns that are inherently built into AI exploration. Another technical issue could be integrating new features into currently used systems. Needless to say, there is a room for a lot of innovation in the industry.

In 2021, the PGC Group reported that the staffing industry in the United States approximately grew by 28% to generate sales in excess of $186.9 billion. It was also reported that the sector had outgrown market expectations by $6 billion. In terms of market size, the US market dominates the industry. As per IBIS World, the total market for the human resources and staffing industry can potentially exceed $760 billion in 2023.

Investors looking to diversify their holdings and benefit from the growth opportunity in the human resources and staffing market can check out stocks like Microsoft Corporation (NASDAQ:MSFT), Workday, Inc. (NASDAQ:WDAY), and Automatic Data Processing, Inc. (NASDAQ:ADP).

Our Methodology

We selected the following human resources stocks based on the hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the first quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm.

Rawpixel.com/Shutterstock.com

Best Human Resources Stocks To Buy Today

11. TriNet Group, Inc. (NYSE:TNET)

Number of Hedge Fund Holders: 16

Focused on small and medium sized businesses, TriNet Group, Inc. (NYSE:TNET) primarily provides human resources consultancy. This includes services around employee benefits, payroll, and risk mitigation services. TriNet Group, Inc. (NYSE:TNET) also caters to taxation, healthcare, and retirement related services. On July 26, the company reported a Q2 non-GAAP EPS of $1.74. The revenue rose 0.8% year-over-year to $1.21 billion. TriNet Group, Inc. (NYSE:TNET) gained 4.12% upon announcement of Q2 results.

According to Insider Monkey’s first quarter database, 16 hedge funds were bullish on TriNet Group, Inc. (NYSE:TNET), in contrast to 23 hedge funds from the previous quarter. William Von Mueffling’s Cantillon Capital Management remains the largest shareholder in TriNet Group, Inc. (NYSE:TNET), with 3.4 million shares worth $275.3 million.

In addition to Microsoft Corporation (NASDAQ:MSFT), Workday, Inc. (NASDAQ:WDAY), and Automatic Data Processing, Inc. (NASDAQ:ADP), TriNet Group, Inc. (NYSE:TNET) is one of the best human resources stocks to invest in.

10. ManpowerGroup Inc. (NYSE:MAN)

Number of Hedge Fund Holders: 19

ManpowerGroup Inc. (NYSE:MAN) is a global provider of recruitment and hiring services. Be it Europe, Asia, or the Middle East, the company is engaged with all kinds of businesses to scout the best talent. ManpowerGroup Inc. (NYSE:MAN) provides services regarding permanent and temporary employment. In addition, ManpowerGroup Inc. (NYSE:MAN) also offers employee assessments, reviews and training. On May 5, the company declared an increase in dividend payments by 8.1% to $1.47 per share. ManpowerGroup reported a Q2 non-GAAP EPS of $1.58 on July 20, missing Street estimates by $0.03. However, revenue for the period came in at $4.9 billion, beating market consensus by $40 million.

According to Insider Monkey’s first quarter database, a total of 19 hedge funds were bullish on ManpowerGroup Inc. (NYSE:MAN), as opposed to 20 in the last quarter of 2022. Cliff Asness’ AQR Capital Management holds the largest position in the company, with 1.2 million shares worth $97.4 million.

Here is what Palm Valley Capital Management has to say about ManpowerGroup Inc. (NYSE:MAN) in its Q3 2022 investor letter:

“We acquired four new positions during the quarter—two of these were recycled. The Fund bought back Kelly Services (NASDAQ:KELYA), a prior holding, and established a new weighting in ManpowerGroup (NYSE:MAN). Both companies serve the staffing industry. Staffing is cyclical, and we expect results for these companies to deteriorate in a recession, even though margins haven’t fully recovered yet from the lockdowns. In our judgment, during previous downturns, their operating performance was acceptable for a cyclical trough. We believe the valuations for Kelly and Manpower are becoming increasingly compelling. Kelly trades at a 46% discount to tangible book value. The company’s net assets are primarily supported by a mountain of receivables. Neither Kelly nor Manpower experienced significant credit losses during the last recession. ManpowerGroup’s $4 billion Enterprise Value is 6.7x its five-year average operating income before amortization, which includes a trough in 2020. Manpower is based in the U.S., but it earns the majority of revenues from Europe. We think the firm’s European exposure has placed it in the doghouse among investors, given the unique risks facing those economies. Manpower’s translated results are also weighed down by the rocketing U.S. dollar…” (Click here to see the full text)

9. Insperity, Inc. (NYSE:NSP)

Number of Hedge Fund Holders: 21

Insperity, Inc. (NYSE:NSP) focuses on optimizing and synchronizing the workforce for small and medium sized businesses. The company human resource functions such as consultancy, recruitment, administration, and payroll services. Insperity, Inc. (NYSE:NSP) also specializes in regulatory compliance. A valuable asset to these services is Insperity Premium – a cloud-based platform that enables companies to outsource human resource processes. It is one of the best human resources stocks to monitor.

On May 24, the company declared a 10% increase in the dividend per share, which now stands at $0.57. The dividend was distributed to stakeholders on June 22. Insperity, Inc. (NYSE:NSP) also beat Q1 top and bottom line estimates.

According to Insider Monkey’s first quarter database, 21 hedge funds were bullish on Insperity, Inc. (NYSE:NSP). In comparison to the last quarter of 2022, this number remains unchanged. Anthony Bozza’s Lakewood Capital Management holds the largest stake in the company, comprising 358,063 shares worth $43.5 million.

Lakewood Capital Management had this to say about Insperity, Inc. (NYSE:NSP) in its Q2 2020 investor letter:

“Earlier this year, the fund initiated a position in Insperity, a provider of outsourced human resources for small- and medium-sized businesses. We began purchasing shares in February as the stock declined significantly following disappointing earnings and guidance related to an unusual spike in employee benefit costs. Subsequent share price declines during the March stock market sell-off, primarily due to concerns about the health of the company’s core customer base, allowed us to purchase additional shares in a high-quality, growing and cash generative business at an extremely discounted valuation.

Insperity operates what is called a Professional Employer Organization (PEO), whereby it serves as the co-employer for around 240,000 worksite employees (WSEs) across almost 9,000 companies. Insperity provides a wide range of human resources offerings to its clients and uses its position as a large “employer” to negotiate lower benefit pricing (including health insurance and workers’ compensation) than its clients would be able to obtain individually. This model has proven remarkably successful, with Insperity growing WSEs by 9% annually since 1999, while expanding gross profit and EBIT during the same period by 11% and 15% per annum, respectively. We believe there is a long runway for growth…” (Click here to see the full text)

8. Robert Half Inc. (NYSE:RHI)

Number of Hedge Fund Holders: 21

Robert Half Inc. (NYSE:RHI) specializes in providing human resources solutions across the globe. With presence in America, Europe, and the Middle East, the company focuses on three major segments – Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti. The first segment focuses on talent engagement in fields such as finance, technology, creative, and legal advisory. The second segment focuses on full-time employment for accounting, finance, taxation, and compliance professionals. Lastly, the Protiviti segment aims to provide business consulting services in finance, regulatory compliance, legal consultation, digital transformations, and internal audits. Robert Half Inc. (NYSE:RHI) is one of the best human resources stocks to buy.

On July 25, Robert Half Inc. (NYSE:RHI) fell short of Wall Street estimates for Q2 revenue by $50 million and the EPS by $0.12. However, the company paid a $0.48 per share dividend to shareholders in June 2023. Dividend payments for the quarter amounted to $51 million.

According to Insider Monkey’s first quarter database, 21 hedge funds were bullish on Robert Half Inc. (NYSE:RHI). Cliff Asness’ AQR Capital Management holds the largest position in Robert Half Inc. (NYSE:RHI), with over 1.1 million shares valued at $89.9 million.

FMI made the following comment about Robert Half International Inc. (NYSE:RHI) in its second quarter 2023 investor letter:

“Robert Half International Inc. (NYSE:RHI) is the market leader in professional staffing for small and medium sized businesses. The company has a premier temporary and permanent placement franchise in the field of accounting (Accountemps) and finance, while its Protiviti business has become a strong domestic and international consultancy. RHI’s reinvestment in technology, including its national database, candidate performance scoring, and proprietary AI and matching capabilities are driving share gains versus fragmented competition. The business model is asset-light and generates consistently strong returns-on-capital, industry leading margins, and free cash flow. The less cyclical Protiviti business accounts for 30% of income. Capital allocation at RHI has been focused on reinvestment, share repurchases, and dividend increases. These factors should result in less overall cyclicality in EPS going forward. The shares are off 40% from its 2022 highs. We feel that the discounted valuation is reflective of current recession worries, which could lower demand for labor. Additionally, there are concerns around AI and the disruption that it could have on accounting. Our view is that the sentiment around the latter appears overdone, as demand for accountants has increased over time despite major advances in productivity tools.”

7. Korn Ferry (NYSE:KFY)

Number of Hedge Fund Holders: 27

Korn Ferry (NYSE:KFY) is a global provider of consultancy services. Although the firm focuses on providing consulting and staffing services, it is also engaged in offering outsourcing services for different business processes. Korn Ferry (NYSE:KFY) helps businesses formulate human resource strategies for rewards, structuring, appraisals, and performance evaluation. It is one of the best human resources stocks to watch.

On June 27, Korn Ferry (NYSE:KFY) announced a 20% increase in dividends, which took the dividend per share to $0.18 for the quarter. The dividend is payable on July 31, to shareholders of record as of July 7. For the past 4 quarters, the dividend was maintained at $0.15 per share.

According to Insider Monkey’s first quarter database, 27 hedge funds held a bullish position in Korn Ferry (NYSE:KFY). In contrast, the stock was found in 20 hedge fund portfolios in the previous quarter. Chuck Royce’s Royce & Associates is the largest position holder in the company, with 857,222 shares worth $44.3 million.

Carillon Tower Advisers made the following comment about Korn Ferry (NYSE:KFY) in its Q3 2022 investor letter:

“Korn Ferry (NYSE:KFY) is a global organization consulting firm that has benefited from strong labor demand. After exceeding expectations for more than a year, the company fell short in the most recent quarter as strong top line growth finally moderated. With economic conditions deteriorating around the world, investors may also anticipate additional deceleration.”

6. Upwork Inc. (NASDAQ:UPWK)

Number of Hedge Fund Holders: 31

A household name for the global freelance community, Upwork Inc. (NASDAQ:UPWK) provides a platform that connects skilled professionals and businesses around the world. The company has created an ecosystem where it matches businesses with the right talent for a diverse set of skills. On May 3, the company reported its Q1 financial results. Upwork beat Wall Street estimates for EPS and revenue by $0.06 and $1.8 million, respectively. The company has also brought in some new leadership, as Erica Gessert moved from Paypal to be the new CFO at Upwork Inc. (NASDAQ:UPWK) at the end of March 2023.

According to Insider Monkey’s first quarter database, 31 hedge funds were bullish on Upwork Inc. (NASDAQ:UPWK), in contrast to 30 hedge funds in the previous quarter. David Brown’s Hawk Ridge Management held the largest stake in the company, worth $62 million.

Like Microsoft Corporation (NASDAQ:MSFT), Workday, Inc. (NASDAQ:WDAY) and Automatic Data Processing, Inc. (NASDAQ:ADP), Upwork Inc. (NASDAQ:UPWK) is one of the best human resources stocks to invest in.

Here is what Spree Capital Advisers has to say about Upwork Inc. in their Investor Letter:

“Early in the fourth quarter we meaningfully increased our position size in Upwork (UPWK). Upwork is a global employment marketplace that enables businesses to vet, hire, and manage talent as part of their distributed workforce. Upwork facilitates labor and demand side connectivity on a global scale by providing the infrastructure to create trust and to streamline talent sourcing, contracting, analysis and payment. Freelancers benefit from having a reputation ranking system that feeds their marketing channels, allowing them to have access to quality, flexible work and on time compensation. Businesses on the demand side benefit by having extensive access to specialized talent, enabling faster and more cost effective hiring, and by having the strategic optionality inherent in the ability to flex a portion of their workforce based on changing demand requirements.

Labor markets have long had unnecessary frictional inefficiencies driven by regional talent imbalances and long-term trends of increased specialization of labor and declining labor mobility. Meanwhile, innovations in communication and global connectivity have transformed the way work gets done. Knowledge workers seek the flexibility and geographic advantages of on demand work, but the barrier to adoption…” (Click here to see the full text)

Click to continue reading and see 5 Best Human Resources Stocks To Buy Today.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up