Korn Ferry (KFY) concentrates in two business areas that carry no tariff risk. Gladly there are 115 other reasons to like this stock (spoiler: I am talking about the 115 factor analysis of the Zen Ratings that points to this stock as being an A rated Stong Buy).
Beyond their core consulting business, the real strength of the firm is their focus on executive recruiting. The best part of that story is that executive recruiting is a great counter cyclical industry.
Meaning that there is often heavier executive turnover during the rough times than during the good times. This helps alleviate some concerns for owning KFY if indeed we are devolving into a recession as many worry about given recent economic weakness.
On the other hand, they are having no problem at all finding growth during the good times like the expected 15% earnings growth this year which is about twice the pace of the average US company. Plus, as mentioned above, this is a business model that pretty well escapes tariffs which gives greater clarity into their future earnings prospects.
Our Zen Ratings quant model has placed KFY in the top 5% of all stocks earning the coveted A rating which equates to a Strong Buy. Historically that has pointed to stocks that have more than tripled the return of the overall market.
In particular what jumps off the page is the top 2% reading for Safety which is a great quality to have during these volatile times. Also good to note that itās in the top 8% for Value and top 14% for Financials.
Strong Financials is one of the best predictors of future earnings beats as shared in this recent article: Boring Financials Point Way to Excited Stock Gains!
This top 14% Financial reading means KFY is a very well run company which shows up in a string of 10 straight earnings beatsā¦and increases the odds of more beats on the way.
Indeed the Wall Street analyst community also smiles on shares with an average target price of $80 and a street high of $83. That upside value squares up well with that top 8% reading for Zen Rating Value score.
This feels like exactly the kind of stock to buy given the mixed economic outlook thanks to the uncertainty of tariffs. Plus the unique focus of the company (executive recruiting) that should help shares outperform in the good days or the bad.
What To Do Next?
Korn Ferry (KFY) is just one of the stellar 18 stocks found in my Zen Investor portfolio.
I pick these stocks based upon their attractiveness in our proven Zen Ratings model. Plus keying in on lessons learned over my 45 year investing career.
Over that time I have seen 7 bear markets, 8 bull markets, and just about everything between.
This has helped me pick some stellar stocks in 2025 even in the face of this volatile market. Plus I will soon be adding 2 new stocks on Wednesday June 4th.
The only way to see these top picks is to become a Zen Investor member.
Gladly that is a very simple process. And right now comes with the ability to save up to 50% on your membership.
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Wishing you a world of investment success!
Steve Reitmeisterā¦but everyone calls me Reity (pronounced āRightyā)
Editor of the Zen Investor
What to Do Next?
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