For those looking to invest in real estate stocks, highly recommended is the Dr. Housing Bubble blog. In a recent posting, the "Dr." pointed out that there was a "Lost Generation" when it came to household income. That has not happened for those investing in staffing industry stocks such as Paychex (NASDAQ: PAYX), Robert Half International (NYSE: RHI), TrueBlue, Inc. (NYSE: TBI), and Labor SMART (OTCBB: LTNC).
The staffing industry is a $100 billion sector in the United States.
Of that, the demand labor segment is $29 billion and growing. As but just one recent example, Labor SMART, a demand labor firm based in Georgia, just posted record revenues in August. Another demand labor firm, TrueBlue, Inc. is up more than 57% this year.
Investors should expect similarly bullish results, no matter what happens with the American economy.
Due to The Great Recession, businesses did not want to commit to full-time staff. The economy in the United States is still weak, has shown by Federal Reserve Chairman Ben Bernanke continuing Quantitative Easing III. As a result, demand rose and should continue for the products and services of Paychex, TrueBlue, Robert Half International, and Labor SMART. Each of those firms has a firmly set niche in the $100 billion staffing industry. For Robert Half, it is in the legal and accounting groups. So established is Labor SMART in the demand labor segment that it added over 100 clients in August.
The client roster of Labor SMART runs from small businesses to Fortune 100 blue chip corporations.
While some may contend that the run-up in the stock prices for Robert Half, Paychex and TrueBlue is over,that is certainly not the case with Labor SMART. As a small cap, it is enjoying robust growth in revenue and presence. But that surge in operations has not caught up with the stock price: yearly revenue is much higher than the market capitalization for Labor SMART. That results in an appealingly undervalued stock in an industry with a highly attractive future.
No comments:
Post a Comment