Kforce: Betting On A Robust Labor Market Recovery

Rabih Aridi, CFA
22 Followers
(12min)

Summary

  • With the Trump administration coming in and interest rate cuts, the staffing market expected to rebound in 2025 and Kforce is positioned to realize a significant increase in its revenue.
  • The new Pune, India development center is a strategic move to access cheaper talent, expected to boost margins and expand project capabilities.
  • Despite revenue drops, Kforce maintained strong cash flow, shareholder returns, and has a low debt ratio, providing financial flexibility.

Businesswomen meeting in modern conference room

MoMo Productions

Investment Thesis

I believe that Kforce (NYSE:KFRC) is a strong buy, and I expect its share price to exceed $85 in the coming 12 months (~40% return). The stock price has fallen from its 2021 highs (above $80) to the current $60 level due to

This article was written by

22 Followers
Rabih is an investment banker with 5 years of experience. He has been investing for more than 5 years, in US and European equities. Rabih is a value investor that looks for undervalued opportunities across various sectors. His main approach is to identify temporary market mispricing in stocks that have robust fundamentals. Rabih generates many of ideas from Seeking Alpha's existing community of investors and he aims to contribute back to this site through his own views on the market.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About KFRC Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on KFRC

Related Stocks

SymbolLast Price% Chg
KFRC
--