Since July 2025, ASGN has been in a holding pattern, posting a small return of 3% while floating around $51.52. The stock also fell short of the S&P 500’s 8.1% gain during that period.
Is now the time to buy ASGN, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.
Why Do We Think ASGN Will Underperform?
We don't have much confidence in ASGN. Here are three reasons we avoid ASGN and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, ASGN’s 2.6% annualized revenue growth over the last five years was sluggish. This fell short of our benchmarks.
2. Projected Revenue Growth Shows Limited Upside
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect ASGN’s revenue to stall. While this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.
3. EPS Growth Has Stalled
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
ASGN’s flat EPS over the last five years was below its 2.6% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
ASGN doesn’t pass our quality test. With its shares lagging the market recently, the stock trades at 10.6× forward P/E (or $51.52 per share). This multiple tells us a lot of good news is priced in - we think there are better stocks to buy right now. We’d suggest looking at the most entrenched endpoint security platform on the market.
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