In this article we take a look at 5 best staffing company stocks. To see more such companies click 12 Best Staffing Company Stocks To Buy Now.
5. Paychex, Inc. (NASDAQ:PAYX)
Number of Hedge Fund Investors: 47
New York-based Paychex, Inc. (NASDAQ:PAYX) provides payroll and HR-related services. In March, Paychex, Inc. (NASDAQ:PAYX) posted strong fiscal Q3 results. Adjusted EPS in the quarter came in at $1.29, beating estimates by $0.05. Revenue in the quarter jumped 7.8% year over year to reach $1.38 billion, beating estimates by $30 million.
For 2023, the company expects its Management Solutions segment revenue to increase by 8%.
The stock is also a solid dividend payer. In February, UBS shared a list of stocks picked up by its machine learning model. PAYX made it to the list. UBS said these stocks offer “greater downside protection, have stronger pricing power, trade at a 15-20% valuation discount vs the market and the payout ratio (45%) is 5 ppts below average implying upside to dividend growth.”
As of the end of the fourth quarter of 2022, 47 hedge funds tracked by Insider Monkey had stakes in the company.
4. Paycom Software Inc (NYSE:PAYC)
Number of Hedge Fund Investors: 47
Oklahoma-based payroll and HR company Paycom in March received a Buy rating from D.A Davidson. The firm’s analyst Robert Simmons said that he sees limited downside to the stock and also finds the stock’s valuation “inviting.”
Another bullish call for the stock came from Goldman Sachs, which included the stock in its list of high-margin growth stocks which the firm is recommending investors to buy versus low-margin growth stocks.
As of the end of the fourth quarter of 2022, 47 hedge funds tracked by Insider Monkey had stakes in the company.
3. Automatic Data Processing Inc (NASDAQ:ADP)
Number of Hedge Fund Investors: 49
HR-related software and services company Automatic Data Processing ranks 3rd in our list of the best staffing stocks to buy now. Perhaps the biggest reason to like the stock amid the current broader market turmoil is its riveting dividend history. The company has upped its dividend for about five decades now. BofA in March shared its screen of “sleep at night” stocks and ADP was one of these stocks. The stock was categorized under the “consistent dividend growers screen.”
As of the end of the fourth quarter of 2022, 49 hedge funds tracked by Insider Monkey had stakes in the company. The total value of these stakes was $3.5 billion. The biggest stakeholder of the company was Terry Smith’s Fundsmith LLP which owns a $1.3 billion stake in the company.
2. Workday Inc (NASDAQ:WDAY)
Number of Hedge Fund Investors: 83
Workday’s Cloud-based platform is widely used all over the world for payroll management, HR management, employee records management and other HR-related and staffing purposes.
Earlier this month, Goldman Sachs shared a list of high-margin growth stocks with its commentary on the overall market and possible future scenarios. Workday was one of the stocks. The firm’s analyst David Kostin recommended investors to own high-margin growth stocks versus low-margin growth stocks.
As of the end of the fourth quarter of 2022, 83 hedge funds tracked by Insider Monkey had stakes in Workday.
1. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 259
Microsoft’s LinkedIn is the second biggest job advertising platform in the world. Amid the flurry of layoffs, the platform is seeing record usage growth. According to Sensor Tower, LinkedIn’s mobile app was downloaded a whopping 58.4 million times worldwide in 2022 across the Google Play and Apple app stores. This shows a 10% increase from the previous year. In the fiscal first quarter of 2023, LinkedIn’s revenue jumped about 17%. The company said that it has reached 150 million subscriptions to newsletters on LinkedIn, up four times when compared to the prior year. With a massive backing by Microsoft and new feature launches, LinkedIn is on path to becoming the biggest jobs platform and the go-to place to find jobs for billions of people.
