Smart Money Ratings For 20 Most Undervalued Stocks

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2. Kelly Services, Inc. (NASDAQ:KELYA)

Insider Transaction: 0.08%

Upside Potential: 134.48%

Forward P/E: 4.34

Kelly Services, Inc. (NASDAQ:KELYA) is a global workforce solutions firm providing staffing, outsourcing, and talent advisory services. The company serves multiple sectors, including education, engineering, and science. Based in Michigan, the company competes with players like ManpowerGroup and Robert Half and differentiates itself through its contingent workforce solutions. Labor market conditions and remote work trends influence the company’s growth in the market. Furthermore, changes in employment cycles and talent shortages often affect its financial stability.

Kelly Services, Inc. (NASDAQ:KELYA) remains near bargain territory with its shares selling at 6.44% above the annual low. However, its Q1 2025 report indicates that the company has met its revenue expectations and surpassed the market average, despite the decline in demand for federal contractors affecting Enterprise Talent Management (ETM) and Science, Engineering & Technology (SET) segments. With consistently high fill rates, the education business continues to stand strong. Additionally, Kelly Services, Inc. (NASDAQ:KELYA) is anticipating the integration of Motion Recruitment Partners (MRP) to create synergies that help optimize operational efficiency in 2025.

Insider participation has barely moved, with an almost unnoticeable 0.08% change, indicating a lack of internal conviction. Concerning institutional interest, Insider Monkey noted 19 hedge funds invested in the stock. At 4.34, the forward P/E ratio signifies a valuation that does not reflect the company’s growth prospects. The projected upside from analysts reaches an eye-catching 134.48%, marking Kelly Services, Inc. (NASDAQ:KELYA)’s entry into our list unavoidable.

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