Zacks Analyst Blog Features ZipRecruiter, Cross Country Healthcare, GEE Group and Resources Connection

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For immediate release

Chicago, IL – July 12, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: ZipRecruiter, Inc. ZIP, Cross Country Healthcare, Inc. CCRN, GEE Group, Inc. JOB, and Resources Connection, Inc. RGP.

Here are the highlights from Monday’s analyst blog:

4 endowment stocks to watch on robust job additions to the economy

Rising costs have been a cause for concern that has prompted people to spend with caution. However, jobs and wages are also on the rise, implying that the economy is still strong and jobs are still plentiful in the United States as employers are willing to pay more.

While wage growth may not match last year’s pace, the steady rise is helping people spend more freely. At the same time, more jobs mean more disposable income in people’s hands in the form of higher wages. With more than 11 million jobs still available in May, job creations should increase over the next few months. Given this scenario, recruitment firms like ZipRecruiter, Inc., Cross Country Healthcare, Inc., GEE Group, Inc. and Resource Connection, Inc. are likely to benefit from it in the short term.

Solid job creation in June

The Labor Department said on July 8 that the US economy added 372,000 solid jobs in June, higher than the 268,000 expected by economists. This follows upwardly revised May figures of 384,000 new job additions.

The unemployment rate was flat and unchanged at 3.6% for the fourth consecutive month, nearly matching the five-decade low reached just before the pandemic hit in 2020. The US economy has been steadily adding jobs over the past months, with a record reached in April.

It should also give the Fed the confidence to continue the aggressive policy of high rates, because more jobs will mean more income, which will allow people to spend more.

The report also suggests that employers are finally succeeding in filling vacancies after months of preventing businesses and businesses from operating at peak capacity.

Additionally, the average hourly wage rose 5.1% to over $32, which is much higher than what was seen before the pandemic hit. While it’s still not enough to keep pace with runaway inflation, a jump is always good because it gives people the ability to spend more freely.

Additionally, wage growth has slowed down a bit from the 6% achieved in 2021. However, wages continue to rise steadily, indicating that the economy is growing faster than expected.

Despite a record number of openings, the job market slowed significantly last year as a spike in cases of the Delta and Omicron strains of coronavirus kept many people out of work. Things are finally changing, and as the economy grows, more jobs are created.

The economy is still going well

The increase in employment in June shows that the economy is still doing well despite inflationary pressures. According to the report, employment growth in June was across all sectors. The consecutive job growth in the leisure and hospitality sector, which has been hit hard by the pandemic, also proves that the sector is finally rebounding.

The hospitality and leisure sector added 67,000 jobs in June, the majority of them in drinking places and restaurants. In addition, employment in business services, health care, and transportation and warehousing continued to grow.

Employment in business and professional services increased by 74,000, while the health sector added 57,000 jobs. Transportation and warehousing added 36,000 jobs, while manufacturing jobs increased by 29,000.

However, the employment growth rate has only recently increased. Before the outbreak, employment was at an all-time high. Then came the COVID-19 outbreak, which resulted in the loss of millions of jobs and the layoff of others. The labor shortage persists despite the fact that the unemployment rate is falling.

Job growth is also expected to continue in the coming months with more than 11.2 million positions still available in the United States.

Stocks to Watch

Given this situation, it seems prudent to focus on personnel stocks. Here are some staffing stocks that carry a Zacks rank #1 (strong buy), 2 (buy) or 3 (hold) worthy of note. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ZipRecruiter, Inc. provides employment services. ZIP offers recruiting, hiring, job board, job posting, web application, candidate screening, applicant tracking, and job alert services. ZipRecruiter primarily operates in the United States and the United Kingdom.

ZipRecruiter’s expected profit growth rate for the current year is over 100%. The Zacks consensus estimate for current-year earnings has improved 64.3% over the past 60 days. ZIP has a Zacks rank of #2.

Cross Country Healthcare, Inc. is a national leader in providing innovative healthcare staffing solutions and services. CCRN’s diverse customer base includes both clinical and non-clinical settings, acute care hospitals, physician groups, ambulatory and ambulatory care centers, nursing facilities, public schools and charter schools, rehabilitation and sports medicine clinics, government facilities and home care. Cross Country Healthcare is able to place clinicians on travel and per diem assignments, local short-term contracts, and permanent positions.

Cross Country Healthcare’s forecast earnings growth rate for the current year is 55.9%. The Zacks consensus estimate for current-year earnings has improved 4.4% over the past 60 days. CCRN has a Zacks rank of #3.

GEE Group, Inc. is a provider of professional recruitment services and solutions. JOB, formerly known as General Employment Enterprises, Inc., is based in Naperville, IL.

The expected growth rate of the profits of the GEE group for the current year is greater than 100%. Shares of JOB have gained 1.8% over the past three months. JOB has a Zacks rank of #3.

Resource Connection, Inc. is a multinational professional services firm that helps business leaders execute internal initiatives. RGP provides its clients with experienced professionals in accounting and finance, human resources management and information technology, project by project.

Resources Connection’s projected earnings growth rate for the current year is 20%. RGP shares have gained 18% in the past three months. RGP has a Zacks Rank #3.

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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.

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ZipRecruiter, Inc. (ZIP): Free Inventory Analysis Report

Resources Connection, Inc. (RGP): Free Stock Analysis Report

Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report

GEE Group Inc. (JOB): Free Stock Analysis Report

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