5 Business Service Stocks To Buy On Solid Job Additions
Zacks Investment Research | Nov 03, 2019 08:15PM ET
The protracted trade war and slowdown in global economic growth have weighed on the U.S. manufacturing sector, but October’s payroll data showed that the service sector is still hale and hearty. Investors can take the opportunity of this positive trend and invest in fundamentally sound stocks from the business service sector that witnessed solid job additions.
October’s Job Numbers Crush Expectations
Per the U.S. Department of Labor, the country added 128,000 new jobs in October, beating the consensus estimate of 88,000. On the other hand, the Bureau of Labor Statistics also reported on the same day that the unemployment rate rose to 3.6%. The rate was 3.5% in September and despite the 0.1% rise, unemployment is still hanging at its lowest level since 1969.
There was a sharp drop in payrolls in the manufacturing sector that lost 36,000 jobs majorly due to the strike at General Motors (NYSE:GM). But, on the brighter side, the U.S. service sector steadily added jobs. Per a report from payroll processor ADP (NASDAQ:ADP), 125,000 jobs were added in the private sector in October.
What’s more, the Bureau of Labor Statistics’ October report stated that professional jobs increased by 22,000. Hence, it is quite visible that the business service sector is doing pretty well by adding jobs consistently.
Grab These 5 Stocks Now
As the U.S. economy keeps creating new jobs in the business service sector, investors can pick solid stocks from it. These stocks flaunt a Zacks Rank #1 (Strong Buy) and have a high scope of growth.
Thomson Reuters Corporation (TSX:TRI) is a publicly traded company that provides news and information-based tools to professionals across the globe. Legal Professionals, Corporates, Tax Professionals, Reuters News and Global Print are its major segments. The company’s expected earnings growth rate for the current year is 61.3%, which is above the industry’s projected rally of 6.3%. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the past 30 days.
Thomson Reuters has outperformed the Zacks Investment Research
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