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 SFN Group
So what: Fueled in large part by a 29% revenue surge at its professional services segment, SFN posted adjusted fourth-quarter earnings of $9.4 million, compared with just $3.2 million in the same year-ago period. SFN shares were beaten down badly during the downturn, falling as low as $1.15 in late 2008, but steadily improving industry trends have boosted them to new five-year highs of $11.50.
Now what: I wouldn't be so quick to jump onto SFN at this point. The shares have more than doubled since July and trade at a clear P/E premium to much larger rivals Manpower and Robert Half International. While SFN CEO Roy Krause believes the "longer-term industry dynamics are positive," Mr. Market seems to be pricing in much of that optimism.
Interested in more info on SFN? Add it to your watchlist.
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 Fool's disclosure policy always gets a perfect score.