Since Nov 8, 2016, the Staffing industry has seen a healthy rise of 42.8% to date, while the S&P 500 gained 13%, primarily driven by the proposed pro-growth policies of President Donald Trump.
Trump's policies are likely to be beneficial to ManpowerGroupMAN as more hiring is in the cards. The company also expects to experience income growth across all its segments.
Currently, the company has a S/TA ratio of 2.58 which means that it gets $2.58 in sales for each dollar in assets. Comparing this to the industry average ratio of 2.44, we can say that ManpowerGroup is a bit more efficient than the industry at large.
Another key metric is the Price/Sales ratio. This approach compares a given stock's price to its total sales, where a lower reading is generally considered better. Right now, ManpowerGroup has a P/S ratio of about 0.37. This is a bit lower than the industry average of 0.51.
Earnings Estimate Revisions
Analysts have been raising their estimates for ManpowerGroup lately, and now the earnings picture is looking favorable for the company.
The company has outperformed the Zacks categorized Staffing Firms industry with an average return of 14.9% compared with 5.5% gain for the latter, over the last 90 days. Over the same period, the consensus estimates for the current quarter jumped from $1.69 to $1.72 today.
ManpowerGroup is continuously making significant investments to expand permanent recruitment solutions offerings. Management continues to believe that global recovery is on track but at a slow and uneven pace. As a result, it is focusing on internal drivers like disciplined pricing and tough control on productivity to ensure uninterrupted profitability.
ManpowerGroup's wide range of services makes it a true global staffing firm. The company provides services for the entire employment and business cycle including permanent, temporary and contract recruitment, employee assessment and selection, training, outplacement, outsourcing and consulting. The company's brand value and strong global network provide it a competitive advantage and reinforces its dominant position in the market. The company leverages a well-established network of approximately 2,900 offices across 80 countries and serves approximately 400,000 clients.
ManpowerGroup currently carries a Zacks Rank #2 (Buy). Some other stocks in the industry worth considering include BG Staffing, Inc. BGSF , DLH Holdings Corp. DLHC and Randstad Holding NV RANJY . All the stocks carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
BG Staffing is currently trading at a forward P/E of 16.4x.
Randstad has a long-term earnings growth expectation of 8% and is currently trading at a forward P/E of 12.5x.
DLH Holdings is currently trading at a forward P/E of 18.6x.
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