PageGroup (LON: PAGE) share price has had a difficult year as concerns about the slowing labour market. The shares have crashed by more than 40% this year and by more than 46% from its highest level in 2021. It is trading at the lowest level since November 2020.
PageGroup earnings ahead
PageGroup is a leading recruiting company that operates in 37 markets, including the UK and the United States. The firm provides services through several brands like Page Executive, Michael Page, Page Personnel, and Page Outsourcing.
PageGroup and other recruiting stocks have come under intense pressure this year as concerns about their growth continue. Hays shares have dropped by more than 30% this year while Robert Walters stock is down by over 40%.
Recruiting stocks have plummeted as investors worry about their growth amid soaring costs of doing business. There are worries that companies will slow their hiring as a way of preserving cash ahead of a recession.
PageGroup share price will be in the spotlight this week as investors focus on its earnings that will come out on Wednesday. These results will come two months after the company published strong first-half results.
The firm’s revenue rose by 27.5% in the first half of the year to more than 977 million pounds. Its pre-tax profit rose by more than 79% to over 114 million pounds. It attributed this strength to rising wage inflation and increased fee rates. It also pointed to the short supply of candidates and shorter time to hire.
The key challenge for PageGroup is that its key markets are seeing a dramatic decline in business activity. For example, the company’s biggest markets like the UK, France, Germany, and China are all expected to slow dramatically this year.
PageGroup share price forecast
The daily chart shows that the PAGE share price has been in a steep downward trend in the past few months. In this period, the stock managed to move below the 25-day and 50-day moving averages. It also retreated below the important support level at 384p, which was the lowest level on June 17th of this year. The MACD has dropped below the neutral level.
Therefore, the stock will likely have a bearish breakout after the company publishes its earnings this week. If this happens, the next key support level to watch will be at 350p.