After posting 364% earnings growth last quarter, global management consulting leader Resources Connection (RGP) has just connected with a new buy point.
XRGP stock made the list of new buys by the best mutual funds, joining five industry peers. Huron Consulting (HURN), SWK Holdings (SWK), NV5 Global (NVEE), Booz Allen Hamilton (BAH) and ICF International (ICFI) also made the cut.
With the highest-possible 99 Composite Rating, Resources Connection ranks No. 1 among its peers in the consulting services industry. The group ranks a strong No. 27 out of the 197 groups IBD tracks.
Resources Connection has also found its way onto IBD Stock Spotlight as the market indexes show signs of a rebound.
Build Custom Stock Screens To Find Ideas For The Next Uptrend
Management Consulting Business Drives 232% Growth
Founded in 1996, Resources Connection bills itself as a next-generation human capital firm. Named one of Forbes' Best Management Consulting Firms for 2022, the company specializes in helping clients streamline critical business issues, from transactions and regulations to corporate transformations.
Having worked with over 88% of the Fortune 100, Resources Connection annually engages with over 2,500 clients around the world. The company has approximately 5,000 employees, establishing a footprint in North America, Europe and Asia Pacific. In addition to more than 40 physical locations, the management consulting firm has multiple virtual offices.
In April, Resources Connection announced the expansion of its HUGO program into California and Texas. The move follows a successful pilot phase in the New York Tri-State Region.
HUGO is an on-demand staffing platform which directly matches businesses with top-tier accounting and finance talent. Backed by live support, the all-in-one app lets clients view top matches, set rates, communicate directly, and get unprecedented control over end-to-end staffing workflow.
The management consulting firm has four consecutive quarters of triple-digit earnings growth, ranging from 124% to 364%. Over the last three fiscal quarters, EPS growth has averaged 232%. Revenue gains over the same period have ranged from 24% to 31%.
The company pays a dividend, currently yielding 3% on an annualized basis.
Resources Connection Nears Breakout With Soaring RS Line
With its relative strength line soaring to new heights, RGP stock has shot past a 19.52 buy point in a cup with handle.
Having fared better than most stocks throughout the bear market, its 50-day moving average has stayed above its 200-day line. The stock remains well above its 21-day line.
On Friday, the stock spiked nearly 12% in massive volume, pushing it right past the buy point. The stock closed the week slightly extended from that entry.
Making new buys during a bear market or market correction is risky, but stay on the lookout for a follow-through day to spark a new uptrend.
As the market indexes look to recover, see if Resources Connection can continue to build on recent growth and its rising relative strength.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
YOU MIGHT ALSO LIKE:
Forget Tech Titans Like Apple, Nvidia — Top Funds Bet On These Stocks
Warren Buffett Stocks: FB, GOOGL Among 25 Names On This Screen
Stay Protected And Prepare For The Next Uptrend With This 3-Step Routine
Identify Bases And Buy Points With This Pattern Recognition Tool
