Winners And Losers Of Q3: Barrett (NASDAQ:BBSI) Vs The Rest Of The Professional Staffing & HR Solutions Stocks

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the professional staffing & hr solutions industry, including Barrett (NASDAQ:BBSI) and its peers.

The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.

The 8 professional staffing & hr solutions stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was 1.1% below.

While some professional staffing & hr solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.

Barrett (NASDAQ:BBSI)

Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ:BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.

Barrett reported revenues of $318.9 million, up 8.4% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ EPS estimates and revenue in line with analysts’ estimates.

“BBSI delivered another strong quarter of controllable growth driven by new client additions,” said Gary Kramer, President and CEO of BBSI.

Unsurprisingly, the stock is down 7.4% since reporting and currently trades at $37.71.

Is now the time to buy Barrett? Access our full analysis of the earnings results here, it’s free.

Best Q3: Kforce (NYSE:KFRC)

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE:KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Kforce reported revenues of $332.6 million, down 5.9% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 40.5% since reporting. It currently trades at $34.49.

Is now the time to buy Kforce? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Insperity (NYSE:NSP)

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE:NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Insperity reported revenues of $1.62 billion, up 4% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.

Interestingly, the stock is up 1.2% since the results and currently trades at $45.65.

Read our full analysis of Insperity’s results here.

First Advantage (NASDAQ:FA)

Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ:FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

First Advantage reported revenues of $409.2 million, up 105% year on year. This result surpassed analysts’ expectations by 1.6%. It was a strong quarter as it also recorded an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

First Advantage pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 9% since reporting and currently trades at $14.10.

Read our full, actionable report on First Advantage here, it’s free.

ManpowerGroup (NYSE:MAN)

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE:MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

ManpowerGroup reported revenues of $4.63 billion, up 2.3% year on year. This print topped analysts’ expectations by 0.7%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ EPS guidance for next quarter estimates but a significant miss of analysts’ EPS estimates.

The stock is down 21% since reporting and currently trades at $30.04.

Read our full, actionable report on ManpowerGroup here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.