ASGN Incorporated (ASGN): A Bull Case Theory

We came across a bullish thesis on ASGN Incorporated on CompanyCharts’s Substack. In this article, we will summarize the bulls’ thesis on ASGN. ASGN Incorporated's share was trading at $49.65 as of January 29th. ASGN’s trailing and forward P/E were 16.72 and 9.96 respectively according to Yahoo Finance.

ASGN Incorporated (ASGN) is a leading provider of IT services and professional staffing solutions, serving both commercial and government clients through technology staffing, digital/creative services, and IT/business solutions. The company operates through established brands, including Apex, Oxford, and ECS, with ECS focused on federal and government-facing work. Despite near-term market pressures and collapsing valuation multiples, the company’s long-term growth trends remain intact, creating an attractive risk/reward profile.

Currently, ASGN trades at deeply discounted multiples, including a P/S of 0.50, P/Gross Profit of 1.72, P/Net Income of 15.19, P/Equity of 1.10, P/CFFO of 6.09, and P/FCF of 7.01, indicating significant undervaluation relative to its operational performance. When focusing on key metrics, revenue growth appears to outpace the low price-to-sales multiple, suggesting that the market is not fully accounting for top-line expansion.

Net income has shown some volatility and a modest decline in recent years, reflecting short-term operational challenges, but it does not overshadow the company’s broader growth trajectory. Free cash flow remains a standout metric, growing meaningfully above the current 7x P/FCF multiple, highlighting ASGN’s ability to generate strong cash returns that could support debt reduction, reinvestment, or shareholder distributions.

The combination of resilient long-term trends, government and commercial diversification, and deeply discounted multiples presents a compelling opportunity for both equity and credit investors. With the market currently mispricing ASGN’s growth and cash generation potential, the stock and bonds offer a favorable entry point, with upside driven by a normalization of multiples and continued execution across its core segments.

Previously we covered a bullish thesis on Kelly Services, Inc. (KELYA) by Unemployed Value Degen and Value Don’t Lie in April 2025, which highlighted its business transformation, improved profitability, and focus on high-margin contract employment. The stock has depreciated approximately by 22.43% since our coverage, as the thesis didn’t fully play out. CompanyCharts shares a similar thesis but emphasizes ASGN’s strong cash flow and diversified operations.

ASGN Incorporated is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held ASGN at the end of the third quarter which was 23 in the previous quarter. While we acknowledge the potential of ASGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.