The Zacks Analyst Blog Highlights: CTPartners Executive Search, Tarena International, Robert Half International, America Movil and Grupo Televisa
CHICAGO, July 8, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the CTPartners Executive Search (AMEX:CTP-Free Report), Tarena International, Inc. (Nasdaq:TEDU-Free Report), Robert Half International Inc. (NYSE:RHI-Free Report), America Movil S.A.B. (NYSE:AMX-Free Report) and Grupo Televisa S.A.B. (NYSE:TV-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
3 Staffing Stocks to Fill Your Portfolio
According to the latest data from the Bureau of Labor Statistics, the economy created 288,000 jobs in June, the strongest growth since the technology boom in late 1990. This propelled total U.S. hiring at its fastest pace since early 2006 to 1.4 million for the first half of the year.
Hiring was broad-based, led by professional and business services, which accounted for over 23% of jobs in June. Retailers were the second-highest contributor creating 13.9% new jobs while food service (11.5%) and healthcare (7.3%) rounded off to the top four. Meanwhile, unemployment dropped to the lowest level in almost six years to 6.1%, suggesting increased confidence in the 5-year old U.S. recovery.
The U.S. economy seems to be on top gear after being frozen by winter storms and sub-zero temperatures at the start of the year. This uptrend is likely to continue in the coming months. As such, this healthy hiring number looks more sustainable than it was in the recent past, and increases the appeal for the staffing stocks, in particular for professional & business service. This corner of the staffing space will likely lead all industry segments in new hiring over the coming quarters.
The optimism in the staffing space is also confirmed by its solid Zacks Industry Rank in the top 25%, indicating continued hiring and more job opportunities. This will result in smooth trading for the sector going forward.
That being said, we have found out the top three picks in the staffing industry. This can be easily done by selecting the stocks that have favorable Zacks Rank, suggesting their outperformance in the coming months. While all the top-ranked stocks are likely to outperform, the following three stocks could be better choices to tap into the space. This is especially true as these stocks have at least a Zacks Rank #2 (Buy) and a superior growth potential that could allow them to continue leading the staffing space heading into the second half.
Stocks to Consider
CTPartners Executive Search (AMEX:CTP-Free Report) is a leading provider of high quality, industry-focused executive search services globally. It assists the recruitment and hiring of "C-level" executives, other senior executives and board members. The stock has seen solid earnings estimate revisions for both the recently concluded quarter and the current year, over the past 90 days.
The consensus estimate for the second quarter has risen 92% from 13 cents per share while the current year estimates climbed 60% to 77 cents per share. This suggests a bright future for this company.
Tarena International, Inc. (Nasdaq:TEDU-Free Report) is a leading provider of professional education services in China with core strength in Information Technology professional education services including classroom training. The company went public in early April and has been riding higher, gaining over 50% over the past month.
Tarena has incredible potential to grow over the next five years with an exceptional growth rate of 40% compared to the industry average of 16.9%. Further, positive earnings estimate revisions over the past 60 days for the second quarter and the current year justify its solid position.
Robert Half International Inc. (NYSE:RHI-Free Report) is an industry leader worldwide in professional consulting and staffing services. It is the parent company of Protiviti, a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit.
The stock has been trending up, hitting new record highs over the past few days and suggesting strong bullishness in the company's growth story. Robert Half is projected to grow at 16.1% over the next five years and its earnings estimate revisions for the current year has been positive over the past 90 days.
Mexican Telecom Majors Troubled by New Bill
After a long wait, the impending Telecommunications Competition Bill has finally received the green signal from the Mexican Senate, according to Bloomberg reports. While the new bill favors the small telecom players defending their competitive position, it targets larger operators like America Movil S.A.B. (NYSE:AMX-Free Report) and Grupo Televisa S.A.B. (NYSE:TV-Free Report), occupying dominant positions in the Mexican telecom industry.
In early 2013, the aforesaid new Telecommunications Competition Bill was proposed by the Mexican President Enrique Pena Nieto, highlighting several measures necessary to reform the telecom and television industry in Mexico . The main objective behind introducing this bill was lending greater uniformity and transparency to the sector while also curbing the concentration of power lying in the hands of select players who dictate market behavior. The telecommunications sector in Mexico is highly monopolistic with one or two major companies influencing the market.
America Movil's wireline division, Telmex, currently controls around 80% of the Mexican fixed-line business, whereas its wireless equivalent, Telcel, holds about 70% market share.
Meanwhile, the Mexican government intends to increase competition by encouraging the entry of new operators in the industry. This, in turn, should help control the price of telecom and broadcasting services in the country.
Apart from advocating the need to create a new regulatory body, the bill stresses on the implementation of asymmetric regulations – a move that faced severe condemnation from America Movil. The rule implies that the leading players, who control majority of the market share, as in the case of America Movil, will have to pay higher mobile termination rates (MTRs) to smaller peers and receive lower rates from them for network interconnection.
Similarly, Televisa, which rules the Mexican broadcasting market, will have to share its broadcast towers with competitors for a stipulated amount of fees. In addition, Televisa will also not be allowed to acquire exclusive broadcasting rights of popular sports and entertainment events.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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