Kelly Services Shares Popped Again: What You Need to Know (KELYA)

Kelly Services Shares Popped Again: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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: Well, so much for that idea. Yesterday, I told you how investors quite logically bid up Kelly Services (Nasdaq: KELYA ) in response to strong earnings … then irrationally sold the stock back off to just about where it was before earnings again. I urged you to buy the stock quickly before Mr. Market came to his senses. And now he has. Kelly shares rocketed 13% this morning.

So what: Between a return of optimism in the stock market generally, and news that unemployment claims figures are improving in the U.S., it seems investors feel they've received renewed permission to reward Kelly's good news today.

Now what: Yesterday, I said Kelly was cheap at 11 times earnings with just a skosh higher price-to-free cash flow ratio. Today, the stock's selling for something closer to 13 times both earnings and free cash flow. It's still cheap based on consensus growth forecasts of 15% -- just not quite as cheap as yesterday.

Want to see how Kelly's growth thesis plays out? Add it to your Fool Watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Rich Smith does not own (or short) shares of any stock named above. The Motley Fool has a disclosure policy. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.