By: Jennifer Saba
Wachovia analyst John Janedis reports on May results of the Monster Employment Index (MEI), down 12% to 166 year-over-year — indicating that the job market is weakening.
“The number is further evidence that employment is indeed softening, and we think the stock will be weak on the news, as expectations are still too high,” Janedis wrote in a note released today.
So far, June is trending like May, according to the note. And while the MEI posted a lift in April, it was most likely a “head fake,” wrote Janedis, due partly to Easter falling in March.
Wachovia maintained its “market perform” rating on Monster.
“We believe macro trends, as well as competitive challenges in N.A. Careers, limit near-term visibility, and will most likely keep the shares range-bound near current levels,” according to the note.
As of early afternoon Monster (NYSE: MNST) was trading down 34 cents to $24.02.