After a long period of unemployment, any upside to the jobs numbers at any point offers a helping hand to the stocks of companies that revolve around the jobs market. That is payroll services, online job search destinations, career management, uniform makers, and even head hunters. So it is no surprise that we are seeing a move higher in stocks such as Paychex Inc. (NASDAQ: PAYX), Automatic Data Processing, Inc. (NYSE: ADP), Monster Worldwide, Inc. (NYSE: MWW), Manpower Inc. (NYSE: MAN), Cintas Corporation (NASDAQ: CTAS), and even in Korn/Ferry International (NYSE: KFY).
Paychex Inc. (NASDAQ: PAYX), a payroll services company, is up 1.7% at $26.45 versus a 52-week range of $24.65 to $32.88.
Automatic Data Processing, Inc. (NYSE: ADP), another payroll services company, is up 1.55% at $40.31 versus a 52-week range of $26.46 to $45.74.
Monster Worldwide, Inc. (NYSE: MWW), the top online destination for those looking for jobs, is up a sharp 5.77% at $12.19 versus a 52-week range of $10.01 to $19.28.
Manpower Inc. (NYSE: MAN), a key recruiting and labor outsource firm, is up 2.7% at $48.09 versus a 52-week range of $39.94 to $63.00.
Cintas Corporation (NASDAQ: CTAS), which is the go-to name for uniforms and other corporate employee services, is trading up 1.8% at $27.15 versus a 52-week range of $23.10 to $30.85.
Korn/Ferry International (NYSE: KFY), an executive recruiting firm, a.k.a. head-hunter, is up 2.8% at $14.74 versus a 52-week range of $12.57 to $18.62.
What is interesting here about this sector is that there is generally an improving environment for companies like these. There is high demand for good temporary workers and this creates more demand for these services. The stocks have also underperformed the broad market and many of these are still very close to 52-week lows.
JON C. OGG
Contact [email protected] for any questions or corrections.
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