51job Inc is Among the Companies in the Human Resource & Employment Services Industry With the Highest Operating Margin (JOBS, KFY, TW)

Date:2011-11-01zhangxu  Text Size:
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Below are the three companies in the Human Resource & Employment Services industry with the highest operating margin. A healthy operating margin is required for a company to pay for its fixed costs and generate cash.

51job Inc (NASDAQ:JOBS) is highest with an operating margin of 34.5%. 51job, Inc. provides integrated human resource services in China, with a strong focus on recruitment related services. The Company's recruitment related services are delivered in both print and online formats. Thus far today, 51job Inc has traded 9,000 shares, vs. average volume of 132,000 shares per day. The stock has underperformed the Dow (-5.0% to the Dow's -1.2%) and underperformed the S&P 500 (-5.0% to the S&P's -1.3%) during today’s trading.

Following is Korn/Ferry International (NYSE:KFY) with an operating margin of 12.1%.

Over the past year, Korn/Ferry International has traded in a range of $11.25 to $24.77 and is now at $16.58, 47% above that low. Over the last five market days, the 200-day moving average (MA) has gone down 0.8% while the 50-day MA has advanced 0.4%.

Finishing up the top three is Towers Watson & Co (NYSE:TW), with an operating margin of 10.5%.

Potential upside of 1.2% exists for Towers Watson & Co, based on a current level of $65.64 and analysts' average consensus price target of $66.40. Towers Watson & Co shares have support at the 50-day moving average (MA) of $60.22 and additional support at the 200-day MA of $59.16.

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