Three Promising Staffing Stocks to Watch Amid Industry Struggles

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The staffing industry is beginning to recover to pre-pandemic levels, with growth driven by the increasing adoption of remote and hybrid work models, supported by technology advancements. The Zacks Staffing Firms industry, encompassing companies like RCM Technologies, Kforce, and HireQuest, has seen a decline of 31.2% over the past year in contrast to the S&P 500’s growth of 33.2%. This industry currently holds a Zacks Industry Rank of #198, indicating it is in the bottom 19% of 243 industries.

RCM Technologies reported a year-over-year revenue increase of 14.7% and a 23.1% increase in net income, with a current ratio of 1.85, indicating strong liquidity. HireQuest improved operational efficiencies significantly, reducing workers’ compensation expenses from $2 million to $89,000 in 2025, leading to stable net income of $10 million. Kforce noted its highest sequential growth in its Technology business since 2022, with expectations of generating $7 million in annualized benefits through operational refinements.

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