Improving Job Numbers Means Better Times For Staffing Providers: Kforce Inc. (KFRC), Trueblue Inc. (TBI)

Kforce Inc. (NASDAQ:KFRC) is another staffing player that has offered exceptional returns to investors in the last year. This high beta stock has accumulated more than 22 percent in gains over the previous quarter even as the company reported lower revenues and profits in the December quarter. The results were better than Street’s expectations as the company demonstrated better margins during the period. As the hiring process in the U.S. is not expected to go away in a hurry, the rally will most likely continue, albeit at a moderate rate. This was evident in the company’s revenue guidance for the current quarter, which stands in the range of $268 million to $274 million. Kforce said earnings per share (EPS) for the quarter will be in the range of $0.09-$0.12. Analysts tracking Kforce Inc. (NASDAQ:KFRC) were expecting more from the company.

Overall, the recovery in staffing firms is likely to continue, although a lot of the gains are purely based on expectations of improved operational performance in the future. As the rally so far indicates that a correction is ruled out, investors may not get the opportunity to enter at lower levels; however, investors can consider buying these stocks during a consolidation.

The article Improving Job Numbers Means Better Times For Staffing Providers originally appeared on Fool.com and is written by Jacob Wolinsky.

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