Latest news with #ZacksOutsourcing
Yahoo
a day ago
- Business
- Yahoo
Here are 3 Outsourcing Stocks to Consider Amid Industry Woes
Data privacy regulations, communication barriers and geopolitical risks are casting a shadow on the Zacks Outsourcing industry. Quality control issues and loss of control are other headwinds. However, the need to cut down costs, the onset of remote work, the rising focus on cybersecurity awareness, and the surge in trends such as AI and ML are the key can consider Barrett Business Services, Inc. BBSI, The Brink's Company, Inc. BCO, and Capgemini SE CGEMYfrom the Outsourcing market. About the Industry Outsourcing involves delegating a company's internal operations to external resources or third-party contractors to enhance operational efficiency. Within the Zacks Outsourcing sector, one can find companies that provide human capital, business management and IT solutions, primarily catering to small and medium-sized enterprises. These services encompass a broad spectrum, including HR support, payroll management, administration of benefits, retirement planning and insurance services. Certain firms excel in delivering business process services, with a strong focus on transaction processing, analytics and global automation solutions. This outsourcing approach empowers businesses to concentrate on their core competencies while external experts manage these critical functions. What's Shaping the Future of the Outsourcing Industry? The business process outsourcing (BPO) services experience higher demand due to greater flexibility, lower costs and enhanced service quality. The IT outsourcing market is also in robust shape. In the future, outsourced IT services will cover a wide array of functions, including programming and technical support. Companies can outsource entire IT departments to cut costs and focus on core operations. The shortage of in-house engineering talent will drive the outsourcing trend. The demand for robust data encryption and cybersecurity measures is rising on the back of increased public awareness and evolving cyber threats, such as ransomware and national-level cyberattacks. To mitigate cybersecurity threats, companies are focusing on employee security awareness training and breach detection systems. Businesses are increasingly turning to outsourced cybersecurity services to lower risks, maintain compliance and support scalability in their operations. Trends like the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI) and Machine Learning (ML) are gradually transforming the outsourcing sector. These innovations improve efficiency, lead to innovations and increase competitiveness, changing the outsourcing landscape for businesses to streamline operations. For instance, IoT data can be collected, processed and analyzed in the cloud, enabling real-time decision-making and predictive maintenance for clients. By integrating AI and ML into customer support outsourcing, companies can provide swifter, effective and consistent customer support while optimizing operational costs. Zacks Industry Rank Indicates Dull Near-Term Prospects The Zacks Outsourcing industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #196. This rank places it in the bottom 20% of 246 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperformthe bottom 50% by a factor of more than two to one. Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry's recent stock market performance and current valuation. Industry Underperforms Sector & S&P 500 Over the past year, the Zacks Outsourcing industry underperformed the broader Zacks Business Services sector and the Zacks S&P 500 composite. The industry has declined 6.9% over this period against the broader sector and the Zacks S&P 500 composite's 16.6% and 13.8% growth, respectively. Industry's Current Valuation On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing outsourcing stocks, the industry is currently trading at 15.96X compared with the S&P 500's 22.75X and the sector's 22.38. In the past five years, the industry has traded as high as 19.71X and as low as 15.07X, with the median being 16.01X, as the charts below show. 3 Outsourcing Stocks Worth a Look Barrett Business Services: This company provides payroll administration, health benefits, staffing and recruiting, and a range of additional services. New client sales, coupled with the upselling of new products and great client retention, are driving BBSI's top line. The company is enjoying success from entering markets with its asset-light model in terms of adding more worksite employees. The company is active on the technology front as well. Barrett Business Services' investment in myBBSI to aid BBSI Benefits is improving client service and support. The BBSI Application Tracking System, launched in March, is receiving positive feedback from clients as well. Overall, the company's investments in technology are reaping benefits and are expected to do so in the long run. The Zacks Consensus Estimate for the company's fiscal 2025 EPS of $2.11 has been flat over the past 30 days. BBSI shares have gained 7.2% over the past three months. Barrett Business Services carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Brink: This is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Growth across all the segments is fueling the top line. Digital Retail Solutions is growing across North America on the back of new installations in auto parts stores and restaurants, while in Latin America, installations in wholesale and C-store markets in Mexico are the driving factors. The company anticipates ATM Managed Services to accelerate in the second half of 2025 due to deployments and pipeline growth. BCO's Global Services Business is growing as long-term customer relationships and global networks are strengthening. The Zacks Consensus Estimate for the company's fiscal 2025 EPS of $7.35 has been flat over the past 30 of Brink have gained 7.5% over the past three months. BCO carries a Zacks Rank #3 at present. Capgemini:This multinational IT services and consulting company is benefiting from a good momentum in financial services and the public sector. The company is experiencing strong growth across the U.K., Ireland, the Asia Pacific and Latin America. On the AI front, CGEMY is witnessing consistent traction with robust client demand. Gen AI is a huge driving factor behind the company's progress in the AI domain. Apart from that, Agentic AI is fueling operational efficiency and value creation. Capgemini is benefiting from investments in key assets. The company has launched a platform to create, integrate and monitor trusted AI agents within its Agentic AI gallery. This helps the company deploy AI for clients while ensuring security and privacy are maintained at the highest levels. The Zacks Consensus Estimate for the company's 2025 EPS has been revised marginally upward to $2.58 over the past 30 days. Shares of Capgemini have gained 9% over the past three months. CGEMY has a Zacks Rank #3 at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report Brink's Company (The) (BCO) : Free Stock Analysis Report Cap Gemini SA (CGEMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
13-05-2025
- Automotive
- Yahoo
Brink's (BCO) Q1 Earnings and Revenues Top Estimates
Brink's (BCO) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 36.13%. A quarter ago, it was expected that this armored car company would post earnings of $1.79 per share when it actually produced earnings of $2.12, delivering a surprise of 18.44%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Brink's , which belongs to the Zacks Outsourcing industry, posted revenues of $1.25 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.42%. This compares to year-ago revenues of $1.24 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Brink's shares have lost about 0.2% since the beginning of the year versus the S&P 500's decline of -3.8%. While Brink's has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Brink's: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.66 on $1.24 billion in revenues for the coming quarter and $7.14 on $5 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Outsourcing is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Hudson Global (HSON), has yet to report results for the quarter ended March 2025. The results are expected to be released on May 13. This staffing company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +108.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Hudson Global's revenues are expected to be $32.35 million, down 4.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brink's Company (The) (BCO) : Free Stock Analysis Report Hudson Global, Inc. (HSON) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
