Robert Half International Inc (NYSE:RHI). RHI has had an impressive run on the bourse over the past year. Shares have gained a massive 76.1%, significantly outperforming the 38.3% growth of the industry it belongs to and 26.2% rise of the Zacks S&P 500 composite.
The company has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company’s earnings for 2021 and 2022 are expected to improve 95.9% and 7.9%, respectively, year over year.
Robert Half International Inc. Price 
Robert Half International Inc. price | Robert Half International Inc. Quote
Factors That Bode Well
Robert Half has been utilizing a major share of its capital expenditures on investments in software initiatives and technology infrastructure. Major software initiatives include upgrades to enterprise resource planning applications and the implementation of a global cloud-based customer relationship management application. Further, the company continues to invest in digital technology initiatives designed to enhance the service offerings to both clients and candidates. Technology investments, a broad and deep client as well as candidate database, along with network scope and global scale, are likely to drive long-term growth for the company.
Protiviti, the company’s wholly-owned subsidiary through which it offers risk consulting, internal audit and information technology consulting services, is in great shape. It is focusing on technology consulting, with additional emphasis on cloud computing, cybersecurity and digital transformation. Protiviti revenues increased 55% year over year to $501 million on an as-adjusted basis in the third quarter.
Robert Half has a strong balance sheet. The company had no debt at the end of third-quarter 2021 against a cash and cash equivalent balance of $634 million.
Tough Competition Stays
Robert Half operates in a highly competitive market and faces tough competition in terms of price and reliability of service on a national, regional as well as local basis. In several areas, local companies are its strongest competitors.
Zacks Rank & Stocks to Consider
Robert Half currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Services sector can consider stocks like Avis Budget (NASDAQ:CAR) CAR, Cross Country Healthcare (NASDAQ:CCRN) CCRN and Accenture (NYSE:ACN) ACN.
Avis Budget has an expected earnings growth rate of 459.9% for 2021. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 392.3% in the past year. It has a long-term earnings growth of 19.4%. CAR sports a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cross Country Healthcare has an expected earnings growth rate of 500% for 2021. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 156.3% in the past year. It has a long-term earnings growth of 21.5%. CCRN sports a Zacks #1 Rank.
Accenture has an expected earnings growth rate of around 19.8% for the current year. It has a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 42.5% in the past year. It has a long-term earnings growth of 10%. ACN sports a Zacks #1 Rank.
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