What Is Robert Half International Inc.'s (NYSE:RHI) Share Price Doing?

Robert Half International Inc. (NYSE:RHI), which is in the professional services business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of US$62.71 and falling to the lows of US$52.13. 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 US$53.99 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.

View our latest analysis for Robert Half International

What's the opportunity in Robert Half International?

Great news for investors – Robert Half International is still trading at a fairly cheap price. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Robert Half International’s ratio of 14.06x is below its peer average of 19.4x, which suggests the stock is undervalued compared to the Professional Services industry. Although, there may be another chance to buy again 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?

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 3.5% expected over the next couple of years, 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? Even though growth is relatively muted, since RHI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on RHI for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RHI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

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.