Why TrueBlue's Shares Jumped Today
Jul 25th 2013 4:43PM
Updated Jul 25th 2013 4:44PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of staffing agency TrueBlue jumped 10% today after the company reported earnings.
So what: Revenue jumped 19%, to $422.3 million, and beat estimates of $420.2 million from Wall Street. Adjusted earnings per share were also up 19%, to $0.31, outpacing estimates by $0.05.
Now what: Management sees strong demand in staffing, as companies add temporary, instead of full-time workers. That may continue to be the case as companies look to avoid health-care costs associated with Obamacare. The stock is still expensive at 21 times forward earnings estimates, but if this growth continues, and companies avoid hiring full-time employees, the stock will continue its march higher.
Interested in more info on TrueBlue? Add it to your watchlist by clicking here.
The article Why TrueBlue's Shares Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.