The Zacks Analyst Blog Highlights: Insperity, Heidrick & Struggles And Robert Half

For Immediate Release

Chicago, IL –April 1, 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: Insperity Inc. (NYSE:NSP) , Heidrick & Struggles International, Inc. (NASDAQ:HSII) and Robert Half International Inc. (NYSE:RHI) .

Here are highlights from Friday’s Analyst Blog:

Low Jobless Claims Show Labor Market Strength: 3 Staffing Picks

There are fresh signs of a tight labor market as the latest U.S. Labor Department data revealed that jobless claims for the week ended Mar 23 fell to a two-month low. The figure was 211,000, down 5,000 from the previous week’s revised level and much below the consensus estimate of 222,000.

The four-week moving average, which is considered a better measure of labor market trends as it evens out the sharp fluctuations in weekly reports, declined 3,250 from the previous week's revised average to 217,250.

This was the 207th straight week in which filings stayed below the 300,000 threshold, the longest streak since 1970. Annual revisions in seasonal adjustment factors revealed that filings have been lower than previously reported since late January.

Labor Market Conditions Remain Healthy

While the economy continues to create new jobs despite a low jobless rate, which is currently at 3.8%, a tight labor market is compelling companies to pay higher to attract and retain employees.

Average hourly earnings in December increased 11 cents to $27.66, registering 3.4% year-over-year increase, higher than 3.1% witnessed in November.

Manufacturing and Non-manufacturing Solid

The Purchasing Managers' Index (PMI) measured by Institute of Supply Management (ISM) touched 54.2% in February, indicating better economic activity in the manufacturing sector. This marks the 30^th consecutive month of manufacturing growth. Also, December was the 109th straight month of growth in non-manufacturing activities, with ISM-measured Non-Manufacturing Index (NMI) touching 59.7%.

Thriving manufacturing and non-manufacturing activities backed by Trump’s favorable policies are keeping the staffing industry healthy.

Jobs Growth to Continue

Non-farm payrolls climbed just 20,000 jobs last month after rising 3,11,000 in January. Although job growth slowed down after last year’s solid gain, the rate of growth remains more than enough to match growth in the working age population.

The Conference Board’s Employment Trends Index increased to 111.15 in February, following a decline in January, registering year-over-year growth of 4.3%.

According to Gad Levanon, Chief Economist at the Conference Board, “We still expect employment to grow fast enough for the labor market to tighten further in 2019, making it easier for job seekers to find a job. One of the ETI components, the percent of respondents who say they find 'Jobs Hard to Get' from The Conference Board Consumer Confidence Survey®, is now at the lowest rate since 2000."

Staffing Stocks Should be Prudent Investments

With indications that the staffing market will keep on growing through 2019, staffing stocks should appreciate in the near to mid-term. Below, we have mentioned three staffing stocks that offer high yields along with good growth prospects.

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Written By: Zacks Investment Research