The four best professional services stocks to buy right now –
The professional services sector is an important part of the global economy. In the United States, it accounts for about 10% of all businesses, with professional services accounting for about 80% of this segment. This segment covers a variety of businesses, from law firms to accounting services to consulting firms and everything in between. Their main commonality is that their business models rely on advice or expertise that comes at a cost to consumers. If you invest in the stock market, you’ve probably heard of some professional services stocks. You may already have some, but if you don’t, now is the time to buy them! This article will explain why investing in professional services stocks is a great idea and which ones you should consider buying if you haven’t already.
CBIZ, Inc. (CBZ)
CBZ is one of the leading providers of human resources and business management services for various companies around the world. The Company’s business consists of two segments; Benefits Services and Business Services. Employee Benefits Services provides plan design, administration and trust services for defined contribution (DC) and defined benefit (DB) plans. Business services include the provision of outsourced financial, accounting and administrative services. CBZ went public in 2013 and currently offers investors a dividend yield of 3.11%. CBZ’s P/E ratio is 19.08 and its forward price/earnings ratio is 16.76. CBZ reported earnings per share of $0.42 in its latest quarter, beating the consensus estimate of $0.41. The company’s revenue of $1.22 billion is also higher than analysts’ estimate of $1.20 billion.
Target Hospitality (TH)
TH is one of the leading hotel operators in the United States and around the world. The company currently operates more than 1,500 hotels under the Hilton, Hilton Garden Inn, DoubleTree, Embassy Suites, Hampton, Hampton Inn, Homewood Suites, Hyatt, Hyatt Place and Wynn brands, among others. TH offers investors a dividend yield of 1.68% and a return on equity of 11.2%. TH’s P/E ratio is 20.11 and its forward price/earnings ratio is 18.13.
Dave & Buster Entertainment (PLAY)
PLAY is an entertainment company that operates a chain of restaurants and bars designed for the whole family to visit together. The company owns and operates 84 locations in the United States and one in Canada. However, the company also has room to grow! PLAY’s CEO said on the latest earnings call that the company has an “aggressive plan to open at least 12 new restaurants in 2019, including one in Canada.” This is good news as the company currently has a P/E ratio of 19.78, a dividend yield of 1.63% and a return on equity of 29.2%.
Carnival is one of the largest cruise lines in the world. The company operates a fleet of 36 cruise ships that sail to destinations around the world. The company also operates a cruise line in Asia and a river cruise line in Europe. Carnival currently trades at a P/E ratio of 18.9, has a dividend yield of 1.44% and a return on equity of 32.8%. The company also has a stock buyback program that could help boost returns for investors over time.
Investing in professional services stocks can be a great way to earn a high rate of return with minimal risk. These companies are often large and well-established, so they can easily handle economic volatility. CBIZ, TH, PLAY and CUK are great stocks to buy now. They have already established businesses in growing industries. They also all have high dividend yields and low price-to-earnings ratios.