Why Robert Half International Inc. (NYSE:RHI) Could Be Worth Watching

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Robert Half International Inc. (NYSE:RHI), which is in the professional services business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $68.79 at one point, and dropping to the lows of $53.66. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Robert Half International’s current trading price of $58.77 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Robert Half International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Robert Half International

What’s the opportunity in Robert Half International?

According to my valuation model, Robert Half International seems to be fairly priced at around 16% below my intrinsic value, which means if you buy Robert Half International today, you’d be paying a fair price for it. And if you believe that the stock is really worth $69.64, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Robert Half International’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Robert Half International?

NYSE:RHI Past and Future Earnings, July 16th 2019
NYSE:RHI Past and Future Earnings, July 16th 2019

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 5.2% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Robert Half International, at least in the short term.

What this means for you:

Are you a shareholder? It seems like the market has already priced in RHI’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on RHI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Robert Half International. You can find everything you need to know about Robert Half International in the latest infographic research report. If you are no longer interested in Robert Half International, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.