TrueBlue Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of staffing company TrueBlue (NYS: TBI) were sent packing today as the market kicked shares 11% lower.
So what: Deutsche Bank downgraded TrueBlue to hold today as concerns about a weak economic recovery and employment led it to cut estimates. TrueBlue isn't the only one being beaten up today. Competitors Manpower Group (NYS: MAN) and Kforce (NAS: KFRC) are among the companies feeling the market's wrath.
Now what: Staffing agencies are in a tough position right now as the economy sputters. They provide a valuable service for companies that don't want to go out and hire full-time workers, but if the economy doesn't improve, no one will hire at all. I am going to stay out of these stocks right now; value stocks that pay dividends are a safer way to invest in this uncertain environment.
Interested in more info on TrueBlue? Add it to your watchlist.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.