ASGN Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
ASGN is not a strong buy for a beginner investor with a long-term focus at this time. The stock is currently oversold, but its financial performance shows significant declines in key metrics, and there are no strong positive catalysts to justify immediate entry. A hold is recommended until clearer signs of recovery or growth emerge.
The stock is oversold with an RSI of 16.346, indicating potential for a rebound. However, the MACD is negative and expanding downward (-1.105), suggesting bearish momentum. Moving averages are converging, and the stock is trading near its S1 support level of 42.978, with a current price of 41.85.
The acquisition of Quinnox, expected to close in March, could enhance EPS, EBITDA margins, and organic growth. Record commercial consulting bookings of $444.4 million reflect strong demand in IT consulting. Analysts have raised price targets recently, citing improving business conditions and AI-driven demand.
Significant YoY declines in revenue (-0.50%), net income (-40.57%), EPS (-37.23%), and gross margin (-1.48%) in Q4 2025 indicate financial weakness. The stock has been downgraded by some analysts, and automation presents risks for the company. Bearish technical indicators and a lack of strong trading trends further weigh on sentiment.
In Q4 2025, revenue was $980.1 million (-0.50% YoY), net income was $25.2 million (-40.57% YoY), and EPS was $0.59 (-37.23% YoY). Gross margin declined to 27.21% (-1.48% YoY). The company projects Q1 2026 revenues between $960 million and $980 million, with net income of $25.8 million to $29.4 million.
Recent analyst ratings are mixed. BMO Capital raised the price target to $65, citing momentum in the IT consulting space. Truist raised the target to $60, highlighting AI-driven demand. However, Wells Fargo lowered the target to $49, noting modest growth expectations in 2026. The consensus reflects cautious optimism but acknowledges risks.
