Kelly Services A Inc

Zacks Equity Research identifies Korn Ferry, ManpowerGroup, and Kelly as staffing stocks poised for growth despite industry headwinds. The staffing industry is gradually recovering to pre-pandemic levels, driven by remote work adoption and technological advancements. Korn Ferry reported 5% year-over-year revenue growth in its fiscal fourth quarter, with net income up 13.9%, and holds $1.9 billion in remaining fees under contract. ManpowerGroup leverages AI to boost commercial scale, generating nearly $200 million in incremental revenues in France, and targets $200 million in permanent cost savings by 2028. Kelly expanded through a major managed service provider program with a North American oil and gas company and maintains a strong current ratio of 1.59 with no current debt. Over the past year, the Zacks Staffing Firms industry declined 5%, underperforming the S&P 500's 26.5% gain.

Kelly Services shares rose after management reaffirmed expectations for improved year-over-year sales and EBITDA margins in each successive quarter of 2026, according to Palm Valley Capital Management’s second-quarter 2026 investor letter. The staffing company’s controlling shareholder, Hunt Companies, filed an amended 13D on May 19 requesting that Kelly’s board form a special committee of independent directors to evaluate potential opportunities involving Hunt, which Palm Valley views as a signal that Hunt plans to make an offer for Kelly. Kelly Services closed at $13.51 per share on July 7, with a one-month return of 15.27% and a market capitalization of $468.38 million. Palm Valley Capital Management held its position, noting the stock remains below its valuation and the news could serve as a favorable catalyst.