KFY

Dividend-Paying Stocks for Investors: Goldman Sachs has identified a list of buy-rated dividend-paying stocks that can provide solid income and growth potential, including PepsiCo, Citigroup, and Xcel Energy, amidst market volatility influenced by trade tensions and economic concerns.

Market Trends and Events: The S&P 500 has seen a decline of nearly 5% since the announcement of tariffs by President Trump, but recent stock rallies are fueled by hopes of easing trade tensions and positive earnings reports from major companies.

Market Volatility and Economic Concerns: Major U.S. indexes have experienced significant volatility in 2025, with declines attributed to fears of a trade war, potential government shutdown, and recession risks, alongside persistent inflation impacting Federal Reserve interest rate decisions.

Dividend-Paying Stocks as Investment Strategy: Amidst market uncertainty, analysts recommend investing in dividend-paying stocks such as Toll Brothers, DICK'S Sporting Goods, KornFerry International, Banco Santander, and Applied Materials, which are seen as indicators of stable business models that can withstand market fluctuations.

U.S. Stock Market Performance: The U.S. stock market showed mixed results with the Dow Jones index dropping approximately 250 points, while several companies like Korn Ferry and Ramaco Resources saw significant gains due to better-than-expected quarterly earnings.

Notable Stock Increases: Companies such as Hesai Group, Bioventus, and Paymentus Holdings experienced substantial stock price increases, with gains ranging from 19.3% to 36%, following positive financial reports and announcements.

Financial Performance: Korn Ferry reported third-quarter FY25 results with flat revenue of $676.5 million, exceeding expectations, and an adjusted EBITDA increase to $114.5 million. The company also announced a 30% dividend increase and repurchased shares worth $17.9 million.

Future Outlook: The company anticipates fourth-quarter adjusted EPS between $1.22 and $1.30, with fee revenue projected at $680 million to $700 million, while KFY shares rose 2.37% in premarket trading.

Fourth Quarter Earnings Guidance: Korn Ferry projects fourth quarter earnings between $1.20 to $1.28 per share, with adjusted earnings ranging from $1.22 to $1.30 per share and fee revenue expected between $680 million and $700 million.

Analysts' Expectations: Analysts anticipate an average earnings report of $1.23 per share on revenues of approximately $690.18 million for the quarter, excluding special items.

Dividend Increase Announcement: Korn Ferry has approved a 30% increase in its quarterly cash dividend to $0.48 per share, payable on April 15, 2025, marking the fifth consecutive year of dividend growth.

Company Overview: Korn Ferry is a global organizational consulting firm that focuses on enhancing client performance through strategic talent management and organizational design.

Dividend Increase Announcement: Korn Ferry's Board of Directors has approved a 30% increase in its quarterly cash dividend to 48 cents per share, payable on April 15, 2025, marking the fifth consecutive year of dividend increases.

CEO Statement: CEO Gary D. Burnison expressed confidence in the company's business through this dividend increase, indicating a strong financial outlook.

Major Earnings Releases: Key companies reporting earnings before the market opens on Tuesday include Ciena, DICK'S Sporting Goods, FuelCell Energy, Kohl's, and Volkswagen.

Additional Earnings Reports: Other companies expected to release earnings include ACHV, AGEN, BWAY, ENDQ, EXK, HENKY, KFY, LEGN, NUWE, and UNFI.

Earnings Release: KORN FERRY is set to announce its quarterly earnings on March 11th, with analysts predicting revenue of approximately $657 million and earnings of $1.14 per share.

Insider Trading Activity: Over the past six months, KORN FERRY insiders have conducted 10 stock sales without any purchases, while institutional investors have shown mixed activity, with 133 adding shares and 186 reducing their positions recently.

Analyst Rating: Trevor Romeo from William Blair has maintained a Buy rating on Korn Ferry (KFY), with the company's shares closing at $63.78 and an analyst consensus price target of $84.00.

Insider Activity: Recent corporate insider sentiment for Korn Ferry is negative, as 37 insiders have increased their selling activity, including CEO Mark Arian who sold 20,000 shares recently.

Earnings Release Announcement: Korn Ferry will release its financial results for the third quarter of fiscal year 2025 on March 11, 2025, with a press release before market opening and a live webcast at 12:00 pm EDT.

Company Overview: Korn Ferry is a global organizational consulting firm that assists clients in designing effective organizational structures, hiring talent, and developing workforce strategies.

Stock Ratings Update: Validea's Value Investor model, based on Benjamin Graham's strategy, has upgraded the ratings of Mueller Industries Inc., Korn Ferry, and First BanCorp from 71% to 86%, indicating strong interest in these mid-cap value stocks due to their solid fundamentals and valuations.

About Benjamin Graham and Validea: Benjamin Graham, known as the "Father of Value Investing," significantly influenced the investment world, mentoring notable investors like Warren Buffett. Validea is an investment research service that analyzes stocks based on the strategies of legendary investors, including Graham.

Growing Trend in Accounting Firms: More small and midsize accounting firms are hiring chief growth officers to enhance competitiveness amid rapid industry expansion and dealmaking.

Focus on Revenue Boosting Strategies: The shift towards private-equity ownership is driving these firms to seek revenue growth through increased services for existing clients and potential acquisitions.

Job Market Stability: The U.S. job market remains solid, but fewer workers are quitting their jobs, with 39.6 million resignations in 2024, a decrease of 11% from the previous year and 22% from the peak in 2022.

Declining Resignation Rates: The monthly resignation rate has fallen below pre-pandemic levels, indicating that opportunities for better job prospects are becoming rarer, and further decreases in resignations may be expected.

Apple Tops the List: Apple has been named the World's Most Admired Company for the 18th consecutive year in the annual Top 50 All-Stars' List, which includes notable companies like Microsoft, Amazon, and Nvidia.

New Entrants and Industry Representation: The 2025 list features four new companies and highlights strong representation from industries such as computer software, general merchandise, megabanks, and pharmaceuticals, showcasing their resilience and adaptability in a challenging business environment.

Return to Office Mandates: Major companies like Amazon, AT&T, and JPMorgan Chase are requiring employees to return to the office full-time, emphasizing the importance of collaboration and connection.

CEO Expectations: A KPMG survey indicates that nearly 80% of CEOs anticipate their employees will be working in offices full-time within the next three years.

Korn/Ferry's Dividend Performance: Korn/Ferry (KFY) has seen a 13.9% increase in share price this year and currently pays a dividend of $0.37 per share, yielding 2.19%, which is higher than the industry and S&P 500 averages. The company has increased its annualized dividend by 45.1% from last year, with a payout ratio of 31%.

Investment Outlook: KFY is considered a strong investment opportunity due to its solid dividend growth potential and expected earnings expansion, with a Zacks Consensus Estimate predicting a 10.98% growth rate for the upcoming fiscal year.

Corporate DEI Initiatives: Some architects of diversity, equity, and inclusion (DEI) are supporting the rollback of these initiatives by big businesses, arguing that DEI has become a buzzword subject to criticism.

Need for Overhaul: There is a consensus that DEI requires significant changes as it has led to undesirable outcomes such as increased consultancy costs and ineffective HR practices.

Importance of Professional Reputation: A strong professional reputation and workplace status are crucial for career advancement, as they influence how colleagues perceive you and can impact opportunities for growth and collaboration.

Strategies for Enhancing Status: To boost your workplace status, actively seek feedback, engage in relationship-building activities, and manage your reputation intentionally while maintaining authenticity; embracing self-doubt can also lead to greater confidence and success.

Return to Office Mandates: Companies like Amazon, UPS, JPMorgan Chase, and Boeing are enforcing in-person work requirements, with Amazon mandating employees to return five days a week starting January 2.

Job Security Concerns: Employees working from home should consider the implications of these mandates on their job security as companies become stricter about office attendance.