One Week to Obamacare: How to Invest?
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Jonathan Yates
One Week to Obamacare: How to Invest?

October 1 marks the open enrollment season under the Affordable Care Act, or Obamacare.  For investors, there are ways to profit, no matter how Obamacare turns out to be, overall.  A shrewd way is in the staffing industry through stocks such as Paychex (NASDAQ: PAYX), Robert Half International (NYSE: RHI), TrueBlue (NYSE: TBI), and Labor SMART (OTCBB: LTNC).

Due to The Great Recession, businesses now hire more part-time workers.  The percentage of the US workforce that is part-time has increased greatly as companies do not want the higher costs of full-time employees.  The staffing industry in the United States is now a $100 billion sector.  The higher costs of Obamacare will keep even more firms from hiring full-time employees, as health insurance must now be provided.  As a result, business has boomed and should continue to for Paychex, Robert Half International, TrueBlue, and Labor SMART.

As but one example, Labor SMART had its revenues for August soar by 175% from the previous year.

In addition to its revenues increasing, Labor SMART added over 100 new clients in August, alone.  Due to demand, the company is increasing its footprint from its East Coast base in Georgia.  Earlier this year, it bought QWIK Staffing Solutions to move into the profitable demand labor market in Florida.  While operations for Labor SMART are booming, the share price has not caught up with its increasing business: For value and growth investors, there is nothing more alluring.

TrueBlue is also in the demand labor segment of the $100 billion staffing industry in the United States.

Headquartered in Utah, TrueBlue has seen its stock price increase more than 56% for 2013.  On a quarterly basis, both sales growth and earnings-per-share growth is higher by almost 20%.  Like Labor SMART, TrueBlue is selling at a discount, which is always appealing to value investors.

For income investors, Paychex pays a dividend well above the average of 2% for a member of the Standard & Poor’s 500 Index.  Paychex also just increased its dividend by more than 6%,  For growth, value, and income investors, there are stocks in the staffing industry ranging from the $15 billion Paychex to the surging small cap Labor SMART to buy to profit from Obamacare.


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