The Zacks Analyst Blog Highlights: Core-Mark, Limbach, NV5, Booz Allen And Broadridge
Zacks Investment Research | Jul 08, 2019 10:01PM ET
For Immediate Release
Chicago, IL –July 9, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include:Core-Mark Holding Company, Inc. (NASDAQ:CORE) , Limbach Holdings, Inc. (NASDAQ:LMB) , NV5 Global, Inc. (NASDAQ:NVEE) , Booz Allen Hamilton (NYSE:BAH) and Broadridge Financial (NYSE:BR) .
Here are highlights from Monday’s Analyst Blog:
5 Business Services Stocks to Buy as Job Gains Rebound
In June, job additions recovered substantially from the severe slump experienced in the preceding month. Hiring widely exceeded estimates, putting to rest fears that the economy was headed for a slowdown. Gains were largely broad-based, with only retailers shedding jobs during the month. Once again, healthcare and professional and technical services emerged as the leading recruiters.
A strong jobs report brings mixed tidings for investors. On the one hand, it reduces chances of a near-term rate cut by the data-dependent Federal Reserve. On the other hand, it does indicate that the labor market is still robust even as economic expansion moves into fresh record territory. Investing in business services stocks, the top hiring sector in June, looks prudent now.
Hiring Recovers, Unemployment Close to 50-Year Low
The U.S. economy added 224,000 jobs in June, easily exceeding the consensus estimate of 161,000. However, May’s dismal hiring numbers were revised marginally downward, from 75,000 to 72,000. Also, at 172,000, average job additions for the first half of 2019 were lower than 223,000 registered last year.
However, the decline in job growth does not detract from the fact that the economy is continuing to create jobs at a steady pace so far into the expansion. Meanwhile, the unemployment rate inched up from 3.6% to 3.7% as 335,000 individuals joined the workforce.
The U6 unemployment rate, which includes people forced into part-time work and those only sporadically looking for jobs, edged up by 0.1% to 7.2%. However, the labor force participation rate, a gauge of the share of working-age Americans, who are employed or looking for a position, increased from 62.8% to 62.9%.
Healthcare, White-Collar Firms Lead Hiring
June’s gains were largely broad-based. Manufacturing added 17,000 jobs, a development which comes as a major boost to President Trump for whom the sector has been a priority. The increase is notable since the sector contributed only 3,000 jobs in both April and May, preceded by a contraction in March.
Meanwhile, construction companies added 21,000 workers. Transportation and warehousing added 24,000 jobs in June and have created 158,000 positions in the past 12 months. While 7,000 more couriers and messengers were added, hiring in air transportation increased by 3,000.
Healthcare, and professional and technical services continued to lead jobs gains. Employment in healthcare increased by 35,000 jobs in June and by 403,000 in the past 12 months. While ambulatory health care services added 19,000 positions, hospitals recruited 11,000 more employees.
Professional and technical services added 51,000 jobs last month. A spurt in hiring in the consulting and computer system design domains is primarily powering jobs growth for the sector. The sector has created 303,000 jobs over the past 12 months.
Our Choices
June’s jobs report will go a long way in allaying fears that the U.S. economy is headed for a slowdown. Market watchers think it is heartening that steady job gains are continuing to flow in even as economic expansion chugs along. With trade tensions ebbing, better times could lie ahead for the economy.
This is why it makes good sense to add business services stocks to your portfolio. However, picking winning stocks may be difficult.
This is where our Zacks Investment Research
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