After exceeding Q2 earnings estimates in July, Robert Half International Inc. (NYSE:RHI) rose to a 52-week high. Since then, it has fallen about 6%. The pullback may prove to be a good entry point.
The hyper-cyclical traditional staffing industry is fragmented, with billions of suppliers, millions of customers and tens of thousands of firms worldwide. Staffing firms compete with each other for suppliers and clients. Margins have decreased in recent years, especially in certain segments, and some say part of the industry has become commoditized. This will only add to the merging tendencies displayed by staffing firms in order to realize greater economies of scale.
A recent threat has been the rise of on-line platforms which function...