Sell ASGN

On Assignment (ASGN) has continued its recent rally, making a solid move higher over the last week to trade just below our $33 target. At 15X next year’s earnings, I believe the stock is now fairly valued for a staffing company. In addition, management’s current strategy of adding staff to drive future growth is not without its risks, as the stock took a hit in October when ASGN missed its earnings estimates. We’ve made a solid double-digit profit in just three months, and given the increased risk and recent volatile trading environment, the smart move for us is to lock that in now. Sell ASGN.