Bull of the Day: ManpowerGroup (MAN)

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ManpowerGroup ( MAN ) continues to position itself for global growth. This Zacks Rank #1 (Strong Buy) continues to consistently grow earnings.

ManpowerGroup is one of the world's largest staffing companies. It helps more than 400,000 clients in 80 countries and territories with their permanent and temporary staffing needs.

Another Quarter, Another Beat

ManpowerGroup has been amazingly consistent with beating the Zacks Consensus Estimate. It did so again on Oct 21 when it reported third quarter results and beat the Zacks Consensus by 15 cents.

Earnings were $1.87 compared to the consensus of $1.72.

It has beat every quarter for 7 years with its last earnings miss coming in late 2008. That is one of the most impressive beat records on Wall Street. Here is its 5-year beat record.

Revenue rose 2% to $5.1 billion but was up 4% on a constant currency basis.

ManpowerGroup isn't just a North American company. It gets about 54% of its revenue from Europe. The company said Europe, especially Northern Europe in Germany, was showing signs of improvement.

The United States was on the soft side but the recent JOLTS report saw the highest quit rate in September since May 2010 which means employees are willing to leave jobs and move. This is usually a good sign for staffing companies.

ManpowerGroup said it saw strong growth in permanent recruitment and in its workforce solutions segment.

Guides Above Consensus

ManpowerGroup gave fourth quarter guidance of a range of $1.65 to $1.73. This was above the Zacks Consensus of $1.63.

The analysts all raised their fourth quarter estimates but they also raised full year 2016 and 2017 estimates. Manpower is known to give conservative guidance as well.

The Zacks Consensus Estimate for 2016 rose to $6.14 from $5.91 with 8 analysts raising estimates in the last week. That is earnings growth of 8.6% compared to 2015.

It's starting to look more bullish for 2017 as well. The Zacks Consensus Estimate rose to $6.49 from $6.30. That's earnings growth of 5.8%.

Shares Are Cheap

Investors haven't been in love with the staffing stocks even though they keep producing.

ManpowerGroup is cheap. It has a forward P/E of just 12.9.

It also rewards shareholders with a dividend yielding 2.3%.

For investors looking for a company with a consistent earnings track record, is growing earnings and is cheap, ManpowerGroup should be on your short list.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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