In this piece, we will take a look at the five best staffing company stocks to invest in. If you want to learn more about the industry and find out more stocks, then take a look at 10 Best Staffing Company Stocks To Invest In.
5. Insperity, Inc. (NYSE:NSP)
Number of Hedge Fund Holders: 24
Insperity, Inc. (NYSE:NSP) is a human resource and business solution provider that is headquartered in Kingwood, Texas, United States. The company offers businesses several solutions such as payroll processing, benefit and compensation management, compliance, training, and development.
By the end of its fiscal first quarter, Insperity, Inc. (NYSE:NSP) earned $1.5 billion in revenue and $1.99 in non-GAAP EPS, beating analyst estimates for both metrics in yet another strong set of results from a staffing company. Following the earnings report, the company also increased its dividend to 52 cents in May 2022.
Insperity, Inc. (NYSE:NSP)’s business model includes earnings from the employees that are employed by its customers. During its fourth quarter earnings presentation, the company shared that it expects these earnings to rise above pre-pandemic levels by the end of this year. Additionally, the company also reported an 81% client retention rate for 2021.
Insider Monkey’s portfolio of 912 hedge fund holdings for the first quarter of this year saw 24 funds as having invested in the firm.
Anthony Bozza’s Lakewood Capital Management is Insperity, Inc. (NYSE:NSP)’s largest investor. It holds 518,063 shares that are worth $52 million.
4. AMN Healthcare Services, Inc. (NYSE:AMN)
Number of Hedge Fund Holders: 25
AMN Healthcare Services, Inc. (NYSE:AMN) is an American workforce solutions and staffing services provider based in Dallas, Texas. Like some other companies, it also focuses its attention exclusively on the healthcare sector as it provides nursing, rapid response nursing, leadership, and physical placement services. Its workforce solution segment allows healthcare providers to manage vendors and workflows.
Jefferies raised the company’s price target to $175 from $170 in May 2022 as it outlined that any revenue fears are already reflected by the share price and that recent dips were illogical. 25 of the 912 hedge funds polled by Insider Monkey for Q1 2022 had bought the company’s shares.
AMN Healthcare Services, Inc. (NYSE:AMN)’s shares have outperformed their respective indexes by hefty amounts since 2017, and the company is right at the center of a major trend in the U.S. healthcare industry. The aging U.S. population will drive the demand up for companies such as AMN Healthcare Services, Inc. (NYSE:AMN), which provide solutions such as staff to nursing homes.
AMN Healthcare Services, Inc. (NYSE:AMN) raked in $1.55 billion in revenue and $3.49 in non-GAAP EPS for its fiscal Q1, beating analyst estimates for both metrics. The revenue marked a strong 75% annual growth, continuing the strong growth trend that we’ve seen throughout our list.
AMN Healthcare Services, Inc. (NYSE:AMN)’s largest investor is Israel Englander’s Millennium Management which owns 890,147 shares worth $92 million.
3. Korn Ferry (NYSE:KFY)
Number of Hedge Fund Holders: 26
Korn Ferry (NYSE:KFY) is an organizational consulting firm. The company’s services hone in on executive recruitment as it covers roles such as chief executive officers, chief financial officers, and other high level corporate positions. Korn Ferry (NYSE:KFY) is based in Los Angeles, California, United States.
By the end of its fiscal third quarter, Korn Ferry (NYSE:KFY) had raked in $684 million in revenue and $1.59 in non-GAAP EPS, beating analyst estimates for both. Unsurprisingly, the company’s revenue also grew by 43% annually during the quarter. Continuing the trend of acquisitions in the sector, Korn Ferry (NYSE:KFY) acquired Patina Solutions Group in April 2022, allowing it to bolster its portfolio of talent covering several areas of functional expertise.
Korn Ferry (NYSE:KFY)’s strongest aspect is its operational model that measures revenue through consultant productivity. Consequently, as more businesses open and the economy speeds up, these metrics will also rise. Equally important are management revenue estimates of $2.6 billion in revenue for 2022, which will mark a 47% growth if realized.
Baird reduced Korn Ferry (NYSE:KFY)’s price target to $90 from $106 in March 2022, yet noted that several factors such as inflation and job hopping contributed to the firm’s strong quarterly earnings. Insider Monkey’s 912 hedge fund poll for this year’s first quarter saw 26 as having invested in the company.
John W. Rogers’s Ariel Investments is Korn Ferry (NYSE:KFY)’s largest investor. It has a $51 million stake that comes through 790,355 shares.
2. Paychex, Inc. (NASDAQ:PAYX)
Number of Hedge Fund Holders: 33
Paychex, Inc. (NASDAQ:PAYX) is a human capital management services provider based in Rochester, New York, United States. As the name suggests, the company is primarily involved in payroll and related services, allowing its customers to pay their employees and conduct compliance.
Jefferies lowered Paychex, Inc. (NASDAQ:PAYX)’s price target to $130 from $140 in May 2022, sharing worries about a recession and changing the price target as part of a wider software industry target reduction. Despite the slightly negative sentiment, Paychex, Inc. (NASDAQ:PAYX)’s CEO was optimistic in March 2022, as he pointed out a great macroeconomic environment and strong employment trends.
Paychex, Inc. (NASDAQ:PAYX) has one of the largest customer bases for a payroll company. By the end of last year, it was serving more than 710,000 companies and reported a high retention rate as well. Additionally, the firm has posted 11 years of successive dividend growth.
Paychex, Inc. (NASDAQ:PAYX) earned $1.2 billion in revenue and $1.15 in non-GAAP EPS by the end of its second fiscal quarter. These allowed it to beat analyst estimates for both metrics. Insider Monkey analyzed 912 hedge fund portfolios for Q1 2022 and discovered that 33 had invested in the company.
Paychex, Inc. (NASDAQ:PAYX)’s largest investor is Robert Joseph Caruso’s Select Equity Group via holding 2.7 million shares worth $377 million.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 259
Microsoft Corporation (NASDAQ:MSFT) is one of the largest technology companies in the world. Originally known for its Windows operating system, the firm has now diversified its presence across several sectors. It owns one of the largest employer-employee connectivity platforms LinkedIn, which lets companies pick out the right candidates for their needs.
Microsoft Corporation (NASDAQ:MSFT)’s fiscal third quarter saw it bring in $49 billion in revenue and $2.22 in GAAP EPS, letting it beat analyst estimates for both. In an event that highlighted its importance in global affairs, the company announced in June 2022 that it had disabled an attack originating from the Islamic Republic of Iran that sought to exploit a Microsoft Corporation (NASDAQ:MSFT) platform to target users in Israel.
Being one of the largest technology companies in the world, Microsoft Corporation (NASDAQ:MSFT) has a presence in several highly growing and crucial industries. These include cloud and enterprise computing, with the company’s Azure platform being one of the top performers out there.
Insider Monkey’s latest hedge fund survey, for the first quarter of 2022 saw 259 out of 912 funds own Microsoft Corporation (NASDAQ:MSFT)’s shares.
Ken Fisher’s Fisher Asset Management is Microsoft Corporation (NASDAQ:MSFT)’s largest investor in Insider Monkey’s database. It holds 27.8 million shares that are worth $8.5 billion.
Disclosure: None. You can also take a look at 15 Best Momentum Stocks To Invest In and Top 10 Small-Cap Stocks Added to Billionaire Mario Gabelli’s Portfolio.
