Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Kelly Services Is Undervalued Going Into A Cyclical Upswing

Kelly Services, Inc. (NASDAQ:KELYA) is trading around $23 near the top end of its 52-week range (~$15-25), but despite this I think the stock has at least another 20% upside from these levels. Kelly's business is supplying businesses with temporary personnel with skills and qualifications in the legal, engineering, and scientific fields, as well as providing staffing in more general office settings. Despite that fact that the labor market is only just beginning to heal and likely still has years ahead of it before it becomes "overheated", Kelly Services is trading as though its recent earnings are at or near a peak rather than having significant expansion opportunities ahead. Kelly is trading at 15-16X last year's EPS and...

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