The latest weekly U.S. jobless claims data is set to be released on Thursday, May 28. Over the past several years, jobless claims have dropped tremendously from 360,000 in 2013 to an expected 265,000-275,000 during the latest reporting period. While the U.S. economy has shown some signs of growth, the labor participation rate continues to hover at more than 30-year lows. Unemployment is a huge catalyst for employment service providers such as Monster.com, which has a revenue model that depends on website traffic. With less people looking for work this sector is expected to suffer, and these five companies look particularly vulnerable in the short term.
On Assignment Inc.(NYSE: ASGN) – $38.18
Employment Services
On Assignment Inc. is a global provider of professionals for requirements in the life sciences, healthcare and technology sectors. The Company provides short and long-term placement of contract, contract-to-hire and direct hire professionals. It operates through three operating segments: Apex, Oxford and Life Sciences. Apex segment is a provider of information technology (IT) staffing and services.
- Market Cap: $1,974,884,630
- Revenues (LTM): 1,850,693,000.00
- EV/EBITDA: 12.3x
- Price Change (1 month): -1.55%
TrueBlue Inc.(NYSE: TBI) – $28.79
Employment Services
TrueBlue, Inc., is a provider of temporary blue-collar staffing services to industries that include construction, manufacturing, transportation, aviation, waste, hospitality, retail, energy, and many more. The Company has a network of 757 branches in all 50 states, Puerto Rico and Canada. It operates as labor ready for general labor through Spartan Staffing for light industrial, CLP Resources for skilled trades, PlaneTechs for aviation and transportation mechanics and technicians, and Centerline Drivers for drivers.
- Market Cap: $1,207,487,753
- Revenues (LTM): 2,351,297,000.00
- EV/EBITDA: 10.7x
- Price Change (1 month): -1.40%
Kforce Inc. (NASDAQ: KFRC) – $21.82
Employment Services
Kforce Inc. (Kforce) is engaged in providing professional and technical specialty staffing services and solutions. The Company operates in three segments: Technology, Finance and Accounting, and Government Solutions. The Company offers various Staffing Services that consist of temporary staffing services (Flex) and permanent placement services (Search).
- Market Cap: $645,698,356
- Revenues (LTM): 1,272,577,000.00
- EV/EBITDA: 11.9x
- Price Change (1 month): -1.13%
Monster Worldwide Inc. (NYSE: MWW) – $6.09
Employment Services
Monster Worldwide, Inc. is the parent company of Monster, the global online employment solution. With a presence in approximately 55 countries globally, including key markets in North America, Europe, South America and the Asia-Pacific region, Monster offers online recruiting solutions. Through online media sites and services, Monster Worldwide delivers audiences to advertisers. It operates in three segments: Careers-North America, Careers-International, and Internet Advertising & Fees. Its services and solutions include searchable job postings, resume database access, recruitment media solutions throughout its network and other career-related content. Job seekers can search its job postings and post their resumes on each of its career websites.
- Market Cap: $554,206,559
- Revenues (LTM): 755,557,000.00
- EV/EBITDA: 11.5x
- Price Change (1 month): -3.03%
DHI Group Inc.(NYSE: DHX) – $8.55
Employment Services
DHI Group, Inc., formerly Dice Holdings, is a provider of websites focused on select professional communities. Through its online communities, professionals can manage their careers by finding relevant job opportunities and by building their knowledge through original and community-shared content. The Company’s segments include: Tech & Clearance, Finance, Energy, Healthcare, Hospitality and Corporate & Other.
- Market Cap: $470,408,192
- Revenues (LTM): 265,695,000.00
- EV/EBITDA: 7.4x
- Price Change (1 month): -3.61%
