More companies are bringing manufacturing jobs back to the U.S. after so much tumult in global supply chains over the last two years. In this segment of "The 5" on Motley Fool Live, recorded on Nov. 23, Fool contributor Taylor Carmichael and Jason Hall discuss why Taylor thinks that online hiring firm ZipRecruiter (ZIP -0.42%) could be a winner from such a shift.
Jason Hall: We're just getting to the second question because we had a really long first one with a couple two-parters there. This is the one that I wanted to talk about the most actually, maybe the second most. But it's semiconductors, what's going on broadly. Supply chain, what's going on broadly. I read the Wall Street Journal today that Samsung is set to announce like it was going to be at five o'clock. I think might have been the Texas Governor was set to make a big economic announcement. But the indications and insiders apparently are saying that the announcement was going to be Samsung was going to plan to build a semiconductor plant in Texas, Arizona, and I think New York state were the three that were most in the running. But it's a $17 billion deployment for this particular plant. Intel has already announced plans to spend tens of billions in the US. There are estimates that Intel could spend between $16 and $120 billion in the US in deployments. Here's the thing, guys. We know the need to expand global capacity is far beyond just semiconductors. A lot of companies are planning to spend a lot of money to build more goods in the US, putting more supply chain stuff, distribution and warehousing, e-commerce fulfillment, like all of this stuff. It's a response to what we're dealing with right now, but also, everything that happened during the first part of the global pandemic. We couldn't get goods out of China. China was locked down and just global supply chain spent most of the past year lockdown and now we can't get everything we need because of demand. Here's the question. Taylor, I'm going to ask you to kick us off here briefly if you could. What's your favorite stock that you think is going to be a winner from the big movement of the reshifting of supply chain and so much more coming back to North America?
Taylor Carmichael: That was a really tough question for me, Jason, because I'm not a semiconductor guy, I'm not a hardware guy and I avoid anything that smacks of a factory just as an investor. But one thought that popped into my mind is ZipRecruiter. That's ticker ZIP. This is an Internet company. It helps people find jobs. They have an AI solution. Anytime you have mass movement in the job market and more and more people change jobs all the time. ZipRecruiter, I think they have a very strong brand now and they have really powerful revenue growth going on in this, 100 percent revenue growth. It's a small-cap company, about 600 million in revenue. They're already profitable at five percent and their price per sale is PS 7. It's cheap for a growth story. They just came public. They are under the radar.
Hall: That company has been around for a long time, but it played second fiddle to a lot of the bigger names out there.
Carmichael: Well, yeah. The whole job sourcing is huge. I mean, you think about LinkedIn and you think there are a lot of different ways to play looking for jobs and how you network. I think are really interesting using AI to connect people with that wonderful job that maybe they can't find on their own or they don't know about and so they are having a lot of success with companies hiring them or paying for their solution to help them find a better class of recruits. It's an interesting company. I have a small investment here. It's asset-light business that I love. I cheated on your question a little bit.
Hall: Not at all. I think it falls right in line with the core mission of that question. Taylor, I think you hit it out of the park.