I See No Reason To Upgrade Resources Connection After This Quarter

Resources Connection remains a Sell as weak demand, slow deal conversion, and mounting AI pressure outweigh its superficially cheap valuation. RGP's core consulting and on-demand talent segments face declining revenues and margins, with management banking on integration and AI capabilities to drive future recovery. Gross margin and SG&A improvements are partly due to temporary factors, while execution risk persists from balancing cost cuts with growth investments.