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Here's Why Retaining Robert Half (RHI) is a Good Decision

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Robert Half Inc. (RHI - Free Report) banks on Protiviti, the wholly-owned subsidiary, excels with Microsoft Azure's AI and ML specialization, meeting stringent requirements and validated by third-party audit. Focused on technology consulting and digital transformation, it boasts strong market positioning, with double-digit margins and revenue performance.

Factors in Favor

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 has attained Microsoft Azure's Artificial Intelligence (AI) and Machine Learnings (ML) specialization, showcasing expertise in AI and ML within the Azure environment.

This recognition signifies meeting stringent requirements, validated by a third-party audit. Protiviti excels in enabling AI adoption and implementing Azure-based solutions. With a focus on technology consulting, cloud computing and digital transformation, Protiviti is positioned strongly in the market, thus demonstrating double-digit margins and revenue performance.

Robert Half Inc. Revenue (TTM)

 

Robert Half Inc. Revenue (TTM)

Robert Half Inc. revenue-ttm | Robert Half Inc. Quote

Robert Half has been consistently returning value to its shareholders in the form of dividends and share repurchases. The company returned $189.29 million, $170.61 million and $155.94 million in 2022, 2021 and 2020, respectively, in the form of dividends. RHI repurchased shares worth $319.9 million, $287.74 million and $159.17 million in 2022, 2021 and 2020 respectively. These moves instill confidence among shareholders and establish the company’s commitment to return value to its shareholders.

Risk

Robert Half’s current ratio (a measure of liquidity) was 1.82 at the end of third-quarter 2023, lower than the 1.86 recorded at the end of the previous quarter. The decreasing current ratio does not bode well for the company. 

RHI currently has a Zacks Rank #3 (Hold).

Stocks to Consider

Here are a few better-ranked stocks from the Business Services sector that may be considered:

Gartner (IT - Free Report) : The Zacks Consensus Estimate of Gartner’s 2023 revenues indicates 7.9% growth from the year-ago figure while earnings are expected to decline 1.9%. The company has beaten the consensus estimate in the past four quarters, with an average surprise of 34.4%.

IT sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

FTI Consulting(FCN - Free Report) : The Zacks Consensus Estimate of FCN’s 2023 revenues indicates 12.1% growth from the year-ago figure while earnings are expected to grow 3.4%. The company has beaten the consensus estimate in three of the four quarters and missed on one instance, the average surprise being 8.5%.

FCN currently has a Zacks Rank #2 (Buy).

Broadridge Financial Solutions (BR - Free Report) : The Zacks Consensus Estimate of Broadridge’s 2023 revenues indicates 7.7% growth from the year-ago figure while earnings are expected to grow 10.1%. The company has beaten the consensus estimate in three of the past four quarters and matched on one instance, the average surprise being 5.4%.

BR presently carries a Zacks Rank of 2.


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