A Global Human Resources Stock for Growth & Income

 

Robert Half International (RHI, $38.58) is a global specialized staffing service, serving corporate needs for accounting, legal, risk consulting, finance, advertising, marketing, information technology and Web design personnel.

(scroll down to see Robert Half International’s stock charts)

As with many American companies, Robert Half’s revenues and earnings dropped in 2009, and have been climbing steadily ever since.  2012 revenues were $4.1 billion and net income was $209 million.  Wall Street projects earnings per share (EPS) to rise 18%, 16% and 9% in fiscal years 2013 through 2015.

The current dividend yield is 1.66% and the 2013 PE is 21.1.  The nine-year PE range has been between 13 and 39, excluding the high and low aberrations.

Robert Half repurchased 49 million shares during the years 2006 through first quarter 2013.  The company’s long-term debt ratio is under 1%.

Institutions own 89% of the company’s stock.

Standard & Poor’s Research (S&P) has a 4-Star Buy rating on Robert Half shares, and a 12-month price target of $51.

S&P assigns Robert Half a Qualitative Risk Assessment of “Medium”.  “Our risk assessment reflects what we view as RHI’s strong position in accounting and finance placements and a healthy balance sheet. This is offset by the highly cyclical nature of the company’s business, which is largely dependent on the U.S. economy and the health of labor markets.”

The stock is on an uptrend, recovering from the 2008 Financial Meltdown.  It traded between $31 – $37 all year, and broke out on the upside on August 1.  Investors might get one more chance this week to buy shares under $38.  There’s long-term resistance at $43/$44.

Goodfellow LLC Rating:  Strong Buy, Trading Buy, Growth, Growth & Income, Value, Volatile.  (08/12/13)

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Happy investing!

Crista Huff

President

Goodfellow LLC

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