US Shares Fall
US Shares Fall
Shares of several staffing companies fell last week after an analyst said he sees the sector unfavorably due to weakness in the employment market and that shares could drop following a sharp rise.
Kelly Services Inc. fell steeply as another analyst said its earnings and share value will not perform as well as those of other companies in the sector.
Stifel Nicolaus analyst James Janesky said in a client note that he views all staffing and employment-related stocks unfavorably "amid continued weakness in the employment market and (we) believe there is potential for our entire ... group to pull back from current levels following the sharp run-up from early-March lows."
Analyst Ty Govatos of C.L. King & Associates said the stocks could rise twofold or more as business improves in the next two to three years, but he cautioned that his calculations do not include risks that could halt the stocks' climb.
Kelly Services Inc., Manpower Inc. and other staffing companies will likely not perform as well as other companies, though they could still climb between 70 percent and 115 percent, he said in a client note. Kelly Services fell 53 cents, or 4.4 percent, to $11.51 in afternoon trading as broader markets were down slightly. Manpower Inc. fell $1.15, or 2.2 percent, to $51.47.
Kforce Inc. fell 48 cents, or 4 percent, to $11.40. It said it will take a $3.6 million charge in the third quarter for stock-related compensation.