Adecco Group AG, a leading global human resources provider, has been upgraded by Zacks Research from a “strong sell” rating to a “hold” rating. This shift, announced on November 6, 2023, reflects a change in the perception of the company’s stock amid evolving market conditions.
Several other analysts have recently weighed in on Adecco’s stock. On December 5, BNP Paribas revised its rating from “strong-buy” to “hold,” while BNP Paribas Exane adjusted its stance from “outperform” to “neutral” on the same day. In contrast, Sanford C. Bernstein upgraded Adecco from a “hold” to an “outperform” rating on September 22, 2023. Notably, Jefferies Financial Group took a different view, lowering its rating from “hold” to “moderate sell” on January 8, 2024. Currently, the consensus rating among analysts stands at “Moderate Buy,” with one analyst recommending a Strong Buy, two assigning a Buy rating, and four giving a Hold rating.
Recent Financial Performance
Adecco’s performance for the third quarter has also garnered attention. On November 6, the company reported earnings of $0.39 per share, surpassing the consensus estimate of $0.35 by $0.04. The company generated revenue of $6.63 billion during the quarter, slightly below analysts’ expectations of $6.68 billion. Adecco’s net margin was recorded at 1.22%, with a return on equity of 10.98%. Looking ahead, sell-side analysts project that Adecco will achieve an earnings per share (EPS) of $1.32 for the current fiscal year.
Founded in 1996 through the merger of Adia Interim and ECCO, Adecco has established itself as one of the largest staffing firms globally. The company, headquartered in Zurich, Switzerland, specializes in various services, including temporary staffing, permanent placement, career transition, and talent development. Its core operations focus on connecting job seekers with employers, managing contingent workforce solutions, and providing consulting services for workforce management and organizational effectiveness.
The recent upgrade by Zacks Research and the mixed perspectives from various analysts illustrate the ongoing fluctuations in the company’s stock performance and market sentiment. Investors will be closely monitoring Adecco’s future financial results and strategic moves as they seek to navigate the complexities of the labor market and economic landscape.
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