Insperity Inc (NSP), G&K Services Inc (GK), The Advisory Board Company (ABCO): Business Service Firms Are Set to Profit

Analysts expect sales growth of about 15.5% in each of the next two years. EPS is only expected to rise by 4% this year before posting major gains next year in a 23.5% run. The low forecast for this year’s revenue could be due to the company’s narrow focus on the health care field.

However, the firm is likely to maintain its current market share, and potentially grow it if the company is contacted for Obamacare-related information. The library that the The Advisory Board Company (NASDAQ:ABCO) already has makes it difficult for competitors to enter the market, and that means clients will continue to come back. In fact, about 90% do.

Where to put your money

While these firms are among the most likely to benefit from the economic recovery, I see one as standing out over the others. G&K Services Inc (NASDAQ:GK) is certainly the most predictable stock to own, and the most easily understood. This gives me comfort investing in the firm, whose revenue will likely move opposite to a decreasing employment rate. This is the type of stock that can provide the backbone of a portfolio.

The article Business Service Firms Are Set to Profit originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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