3 Reasons To Consider Buying SEEK Limited (ASX:SEK) Shares

SEEK Limited (ASX: SEK) shares have fallen nearly 20% over the past six months, is it time to buy?

SEEK is an online employment business that matches job seekers and employers together. It is also used by hiring agencies to build a portfolio of candidates. SEEK operates in a list of countries including Australia, New Zealand and China. SEEK also offers online education services and volunteering opportunities for not-for-profits.

3 reasons to consider SEEK shares

1. Market leader in Australia: Many of the world’s leading online platform or networking businesses create growing market power after becoming number one. Just look at how Google, Facebook and Amazon are titans in their respective industries. Once you have the number-one position you can increase pricing with (usually) little in the way of negative effects.

2. Would you like fries with that? SEEK has achieved clear market leadership in employment and now it is working on adding additional services. SEEK education services is one area of growth. Using product, tech and data to create insights also allows SEEK to offer the most relevant candidate or career to the prospective user. It also operates a leading Australian recruiter application tool and an online platform for issuing, storing and sharing academic documents which is live at 65 universities.

3. International earnings: Not many of Australia’s leading companies have impressive international earnings profiles. SEEK currently operates in 18 countries and has a market leading position in 14 of them. China, South East Asia, Brazil and Bangladesh are just some of the places where SEEK is growing.

Over two-thirds of SEEK’s revenue comes from outside of Australia & New Zealand. SEEK has a very important stake in Zhaopin, which is the market leader in China by the number of hirers and registered users. China is a huge market and could generate impressive revenue growth for SEEK for many years to come. Zhaopin’s revenue has grown at a compound annual growth rate of 19% between FY12 and FY18.

One reason not to like SEEK:

People will always be looking for jobs. But, economies go through cycles and job markets can have recessions too.

Australia’s employment market has gone on a great run in recent years and that could slow down at some point, which may hurt the number of jobs being advertised and therefore SEEK’s shorter-term earnings.

For that reason, it might be better to consider businesses that are less exposed to cyclical forces for now, such as the shares in the free report below.

Free report: 3 cloud stocks to buy now

As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

We’ll send you our report for free, including the names, ticker codes and analysis when you click the button above and enter your email address.

Free report: 3 cloud stocks to buy now

As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

Click here to access this report for free, including the names, ticker codes and analysis.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.