Zacks Analyst Blog Highlights Cross Country Healthcare, Kforce, RCM Technologies and KornFerry International
For immediate release
Chicago, IL – June 10, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Cross Country Healthcare, Inc. CCRN, Kforce Inc. KFRC, RCM Technologies, Inc. RCMT and KornFerry International KFY.
Here are highlights from Thursday’s analyst blog:
4 endowment stocks to watch on strong additions to the economy
Rising costs and soaring inflation have been concerns for months now, forcing the Fed to aggressively tighten monetary policy. However, so are salaries and jobs. A record number of job creations in May proves the underlying strength of the US economy.
More jobs and higher salaries mean more money available. With thousands of job vacancies, job additions to the US economy are also expected to continue in the coming months. Given this scenario, recruitment firms like Cross Country Healthcare, Inc., Kforce Inc., RCM Technologies, Inc. and KornFerry International are likely to benefit from it in the short term.
Job creations continue to increase
The Labor Department said on June 3 that the US economy added 390,000 new jobs in May, following April’s revised gains of 436,000 jobs. The May figures also beat analysts’ expectations of an increase of 318,000.
The unemployment rate remained stable at 3.6% for the third consecutive month, while the level of labor force participation increased slightly. The report suggests that employers are finally getting people on board after months of vacancies that have kept businesses and organizations from operating at peak levels.
In addition, average hourly earnings rose 0.3% despite soaring inflation. Year over year, wages continued to grow at the rate of 5.2% in May. Although hourly wages have slowed somewhat from 2021 highs, they continue to rise at a steady pace, indicating that the economy is recovering at a faster pace than expected.
The job market had slowed somewhat last year despite a record number of vacancies, as a rise in cases of the Delta and Omicron variants of the coronavirus kept many people out of work. Things are finally changing and more jobs are being created as the economy reopens.
Additionally, the government’s economic stimulus to combat the COVID-19 pandemic, which provided people with more purchasing power at the time, has expired and many people are preparing to return to work.
Steady economic recovery
Despite inflationary pressures, employment growth in May shows that the economy is recovering at a rapid pace. Job growth was widespread, according to the report. The leisure and hospitality sector, which was hit hard during the pandemic, is finally recovering and this is evident in the job creations.
In May, the leisure and hospitality industry added 84,000 jobs, the majority in the hotel and restaurant industries. In addition, there have been steady job creations in business services, education and health care.
Employment in business and professional services jumped an impressive 75,000, while 74,000 jobs were added in the health and education sectors each. Payrolls rose by 36,000 in the construction sector, the highest in three months.
However, the pace of job creation has picked up momentum only recently. Employment was at an all-time high before the COVID-19 outbreak. Millions of jobs have been lost or cut during the pandemic. Despite the fact that the unemployment rate is falling, labor shortages persist.
That said, what is more reassuring is that the activity rate, which measures the number of people employed or looking for work, jumped to 62.3%.
The situation makes it an ideal opportunity to invest in personal stocks.
Cross Country Healthcare, Inc. is a national leader in providing innovative healthcare staffing solutions and services. CCRN’s diverse customer base includes both clinical and non-clinical settings, acute care hospitals, physician groups, ambulatory and ambulatory care centers, nursing facilities, public schools and charter schools, rehabilitation and sports medicine clinics, government facilities and home care. Cross Country Healthcare is able to place clinicians on travel and per diem assignments, local short-term contracts, and permanent positions.
Cross Country Healthcare’s forecast earnings growth rate for the current year is 35.3%. The Zacks consensus estimate for current-year earnings has improved 66.3% over the past 60 days. CCRN has a Zacks rank of #1 (Strong Buy). You can see the full list of today’s Zacks #1 Rank stocks here.
Kforce Inc. and its subsidiaries provide professional recruitment services and solutions to clients on a temporary and permanent basis through its Technology and Finance, and Accounting segments. KFRC’s Technical segment provides both Flex and Direct Hire services to customers, primarily focusing on information technology areas such as system/application architecture and development, data management, business and artificial intelligence, machine learning and network architecture and security.
The FA segment of Kforce Inc. provides both Flex and Direct Hire services to clients in areas such as accounting, transactional finance, financial analysis and reporting, tax, budgeting, loan servicing , professional administration, audit services and systems, and control analysis and documentation. .
Kforce’s expected profit growth rate for the current year is 24%. The Zacks consensus estimate for current-year earnings has improved 3.8% over the past 60 days. KFRC has a Zacks rank of No. 2 (buy).
RCM Technologies, Inc. is a national provider of business, technology and resource solutions in information technology and professional engineering for clients in the enterprise and government sectors. RCMT has developed its information technology skills in the areas of resource augmentation, e-business, enterprise resource planning support, network and infrastructure support, and knowledge.
RCM Technologies’ expected profit growth rate for the current year is over 100%. The Zacks consensus estimate for current year revenue has improved more than 100% in the past 60 days. RCMT has a #2 Zacks rank.
KornFerry International is the world’s leading and largest executive search firm with the broadest global presence in the executive search industry. KFY provides executive search services exclusively on a retained basis and caters to our clients’ global recruitment needs from middle management to executive level. KornFerry International customers include many of the world’s largest and most prestigious public and private companies, mid-market and emerging companies as well as government and non-profit organizations.
KornFerry International’s expected earnings growth rate for the current year is over 100%. KornFerry shares have gained 0.5% over the past three months. KFY has a Zacks rank of No. 3 (Hold).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.