Kelly Services Inc (KELYA) Grew in Q1 Despite Challenging Staffing Climate

Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, Palm Valley Capital Fund increased 1.04% compared to 2.46% and 5.69% gains for the S&P SmallCap 600 Index and the Morningstar Small Cap Index, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Palm Valley Capital Fund featured stocks like Kelly Services, Inc. (NASDAQ:KELYA) in the first quarter 2024 investor letter. Headquartered in Troy, Michigan, Kelly Services, Inc. (NASDAQ:KELYA) provides workforce solutions to various industries. On April 4, 2024, Kelly Services, Inc. (NASDAQ:KELYA) stock closed at $24.18 per share. One-month return of Kelly Services, Inc. (NASDAQ:KELYA) was -2.54%, and its shares gained 48.68% of their value over the last 52 weeks. Kelly Services, Inc. (NASDAQ:KELYA) has a market capitalization of $852.677 million.

Palm Valley Capital Fund stated the following regarding Kelly Services, Inc. (NASDAQ:KELYA) in its first quarter 2024 investor letter:

“The top gainers in the Palm Valley Capital Fund in Q1 were the Sprott Physical Gold Trust (ticker: PHYS), Kelly Services, Inc. (NASDAQ:KELYA), and John Wiley & Sons (ticker: WLY). Kelly Services has managed to grow earnings despite a challenging climate for staffing. Kelly’s leading position in educational staffing (e.g., substitute teachers) is offsetting lower demand from other industries. Management is executing its margin improvement plan and projects further gains in 2024. Additionally, the company recently sold non-core European operations at an excellent price ($100 million in proceeds received for $1 million of EBIT!). The business is flush with cash (~$250 million), and allocating this carefully is important to the investment case.”

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Kelly Services, Inc. (NASDAQ:KELYA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Kelly Services, Inc. (NASDAQ:KELYA) was held by 14 hedge fund portfolios, compared to 10 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.