This staffing company just reported excellent fourth quarter results, but the share have dipped a bit, creating a buying opportunity.
ASGN Incorporated (ASGN)
From Upside
Professional staffing company ASGN Incorporated (ASGN) provides skilled workers to several attractive sectors, including technology, engineering, and life sciences. Serving nearly 15,000 commercial and government clients, management estimates its addressable market approaches some $280 billion.
The company stands to profit from acquisitions and market-share gains that help diversify the revenue stream. Recently, ASGN acquired Blackstone Technology’s federal division for $85 million in a deal that strengths the firm’s position in cloud applications and cybersecurity.
ASGN earns a 91 for Quadrix® Overall, 88 for Quality, and 78 for Earnings Estimates. Consensus estimates call for per-share growth of 6% for full-year 2019 and 8% for the December
quarter, which should be announced on Feb. 12. (Nancy’s Note: for 4Q, ASGN earned $1.28 per share, up 12% on revenues of $1.0 billion, up 10.3%.) For 2020, the consensus is $5.01, up 9%. Revenue is expected to advance 7%.
Shares trade at just 14 times estimated 2020 earnings, versus the industry median of 21. We are starting ASGN with a Buy rating.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, February 3, 2020