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The Outsourcing industry has outpaced the S&P 500 Index so far this year. The industry, which is placed in the top 43% of more than the 250 Zacks industries, has rallied 29.1% in the said time frame, surpassing the index’s rise of 18.7%. The outperformance can be attributed to increasing demand for expertise in improving efficiency and lowering costs.
Economic Strength Keeps Demand Environment Strong
Economic strength has kept manufacturing and non-manufacturing activities in good shape, thus keeping the demand environment for outsourcing services strong. June marked the 34th month of consecutive manufacturing growth with the Purchasing Managers' Index, measured by Institute of Supply Management (ISM), touching 51.7%. Also, June was the 113th month of consecutive growth in non-manufacturing activities with ISM-measured Non-Manufacturing Index touching 55.1%.
Emerging Technologies to Improve Speed to Market
Most of the industry participants are considering emerging technologies such as cloud computing and robotic process automation to drive competitive advantage. This should help increase innovation, improve speed to market and drive performance within the industry. The industry should witness increased transparency on a global scale as several companies are expected to adopt transparent policies.
4 Stocks on Investors’ Radar
The outsourcing industry comprises companies that offer information technology, payroll, human resource, retirement and insurance services, business management solutions and business process outsourcing for small and mid-sized companies in the United States and abroad.
Below, we have mentioned four stocks that are benefiting from sustained growth in the industry.
The expected earnings growth rate for the current year is 12.3%. Shares have gained a massive 70.9% year to date.
Broadridge Financial Solutions, Inc., a provider of investor communications and technology-driven solutions, also carries a Zacks Rank #2. The expected earnings growth for the current fiscal year is 11%. The stock has gained 37.8% year to date.
Business process outsourcing giant Genpact Ltd. carries a Zacks Rank #3 (Hold). The expected earnings growth rate for the current year is 11.1%. The stock has gained a massive 43.1% year to date.
Barrett Business Services, Inc.,a provider of business management solutions for small and mid-sized companies, also carries a Zacks Rank #3. The expected earnings growth rate for the current year is 10.4%. Shares have gained a massive 49.5% year to date.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights: TriNet, Broadridge Financial Solutions, Genpact and Barrett Business Services
For Immediate Release
Chicago, IL – July 17, 2019 – Today, Zacks Equity Research discusses Outsourcing, including TriNet Group, Inc. (TNET - Free Report) , Broadridge Financial Solutions, Inc. (BR - Free Report) , Genpact Ltd. (G - Free Report) and Barrett Business Services, Inc. (BBSI - Free Report) .
Industry: Outsourcing
Link: https://www.zacks.com/stock/news/442890/outsourcing-industry-momentum-continues-4-stocks-in-focus
The Outsourcing industry has outpaced the S&P 500 Index so far this year. The industry, which is placed in the top 43% of more than the 250 Zacks industries, has rallied 29.1% in the said time frame, surpassing the index’s rise of 18.7%. The outperformance can be attributed to increasing demand for expertise in improving efficiency and lowering costs.
Economic Strength Keeps Demand Environment Strong
Economic strength has kept manufacturing and non-manufacturing activities in good shape, thus keeping the demand environment for outsourcing services strong. June marked the 34th month of consecutive manufacturing growth with the Purchasing Managers' Index, measured by Institute of Supply Management (ISM), touching 51.7%. Also, June was the 113th month of consecutive growth in non-manufacturing activities with ISM-measured Non-Manufacturing Index touching 55.1%.
Emerging Technologies to Improve Speed to Market
Most of the industry participants are considering emerging technologies such as cloud computing and robotic process automation to drive competitive advantage. This should help increase innovation, improve speed to market and drive performance within the industry. The industry should witness increased transparency on a global scale as several companies are expected to adopt transparent policies.
4 Stocks on Investors’ Radar
The outsourcing industry comprises companies that offer information technology, payroll, human resource, retirement and insurance services, business management solutions and business process outsourcing for small and mid-sized companies in the United States and abroad.
Below, we have mentioned four stocks that are benefiting from sustained growth in the industry.
TriNet Group, Inc., a provider of human resources solutions for small and midsize businesses, carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The expected earnings growth rate for the current year is 12.3%. Shares have gained a massive 70.9% year to date.
Broadridge Financial Solutions, Inc., a provider of investor communications and technology-driven solutions, also carries a Zacks Rank #2. The expected earnings growth for the current fiscal year is 11%. The stock has gained 37.8% year to date.
Business process outsourcing giant Genpact Ltd. carries a Zacks Rank #3 (Hold). The expected earnings growth rate for the current year is 11.1%. The stock has gained a massive 43.1% year to date.
Barrett Business Services, Inc.,a provider of business management solutions for small and mid-sized companies, also carries a Zacks Rank #3. The expected earnings growth rate for the current year is 10.4%. Shares have gained a massive 49.5% year to date.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.