On Feb 13, 2013, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy). The company has amassed a
solid return of roughly 24% over the past one year.
Why the Upgrade?
Manpower has been witnessing rising earnings estimates on the
back of better-than-expected fourth-quarter 2012 results, buoyed
by effective cost management and better gross margin. The company
declared impressive results on Jan 30, 2012, wherein earnings of
91 cents a share surpassed the Zacks Consensus Estimate of 77
cents by 18.2%.
This global leader in the employment services industryhas
outperformed the Zacks Consensus Estimate for 17 straight
quarters by an average of 61.9%. The long-term expected earnings
growth rate for the stock is 7.4%.
Total revenue of $5,202.6 million also came ahead of the Zacks
Consensus Estimate of $5,140 million but fell 5.1% year over
year. However, we observe that the rate of decline in total
revenue decelerated from 10.5% witnessed in the third quarter of
Manpower is now contemplating on exiting lower margin business
and venturing into high margin business. The company is also
focusing on controlling expenses. On the other hand, the
ManpowerGroup Solutions business sustained its growth
The demand for the counter-cyclical outplacement services
portrayed signs of steadiness, which increased 16% during the
fourth quarter of 2012. Canada, U.K., China and India, all
contributed to the company's growth story.
The Zacks Consensus Estimate for 2013 rose 4.1% to $3.07 per
share over the last 30 days. For 2014, the Zacks Consensus
Estimate advanced 8.3% over the same timeframe to $3.66 per
Other Stocks to Consider
The stock worth considering in the business services sector is
), which holds a Zacks Rank #1 (Strong Buy) and is expected to
continue with its upbeat performance and sustain its positive
earnings surprise trend. Other stocks that should be merited are
AMN Healthcare Services Inc.
Robert Half International Inc.
), both of whichhold a Zacks Rank #2 (Buy).
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KORN/FERRY INTL (KFY): Free Stock Analysis
MANPOWER INC WI (MAN): Free Stock Analysis
ROBT HALF INTL (RHI): Free Stock Analysis
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