With high unemployment in the US, HireQuest, Inc. (HQI), which offers recruiting services, will most likely see a surge in its revenue. Right after the recession hit in the last financial crisis, HQI’s shares price spiked up. I expect the stock to do the same in 2020, 2021, and 2022. In addition, the company has cash, and a franchise operating model, which will help the company grow quickly. To sum up, I believe that the company and the stock represent a compelling opportunity.
HireQuest May See Its Revenue Picking Up in 2020
The Coronavirus crisis has led to the worst period for US workers since the Great Depression. A significant amount of well qualified individuals is wondering at home whether they will recover their previous positions or not. Let’s take a moment to foresee what type of business can help unemployed people. Don’t doubt it, they need companies offering on-demand labour solutions. Savvy investors may also be interested in investing in the industry.
Among the different operators offering temporary staffing and recruiting services, HireQuest Inc. is my favorite. The company has operated for more than 22 years, so it has accumulated a significant amount of know-how and expertise. Furthermore, in April 2019, HireQuest Inc. executed a merger with Command Center, which will most likely bring synergies and growth. Hence, shareholders will benefit from the expected surge in demand for recruiting services.
Disclosure: We don’t own the stock