Resources Connection (NASDAQ: RECN) provides professional services to corporations, in support of client-led projects and initiatives. Areas of expertise include finance, accounting, risk management, internal auditing, information technology, human resources, supply chain management, and legal matters. The firm serves 2,400 companies from more than 80 offices around the world. The client list includes Southwest Airlines (NYSE: LUV) and Exelon Corporation (NYSE: EXC).

Resources Connection pleased investors last week, when it reported fiscal Q4 EPS of 35 cents and revenues of $236.7 million. Analysts had been expecting 28 cents and $228.0 million. During the quarter, the company repurchased about 1.1 million RECN shares. Deutsche Securities subsequently reiterated its "buy" rating on the issue.

The stock popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with one "strong buy", one "buy" and eight "holds". Analysts expect an 18% average annual growth rate, through the next five years. The RECN PEG ratio (1.08), Price to Sales ratio (1.09), Sales Growth rate (18.05%) and Return on Assets (11.94%) compare favorably with industry, sector and S&P 500 averages. Over the past 52 weeks, RECN has traded between $15.39 and $34.74. A stop-loss of $19.85 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.