Reasons to Retain ManpowerGroup (MAN) Stock in Your Portfolio

ManpowerGroup MAN stock has gained 3.2%, outperforming 1.7% growth of the industry it belongs to.

MAN has an impressive Growth Score of A. This style score condenses all essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth. It has an expected long-term (three to five years) EPS growth rate of 9.6%.

ManpowerGroup Inc. Revenue (TTM)

 

ManpowerGroup Inc. Revenue (TTM)

ManpowerGroup Inc. revenue-ttm | ManpowerGroup Inc. Quote

Factors That Auger Well

ManpowerGroup is executing strong pricing and cost control. It is making substantial investments in technology to boost productivity and efficiency. It has implemented front office systems, and cloud-based and mobile applications. Additionally, it has made enhancements to its global technology infrastructure across various markets.

On the digitization front, ManpowerGroup is making significant progress in its technology roadmap and the deployment of PowerSuite, a global cloud-based platform for front and back-office. The digitization strategy aimed at transforming back-office functions is expected to lead to cost efficiencies.

The company returned $179.8 million, $270 million and $210 million through share repurchases and made dividend payments of $144.3 million, $139.9 million and $136.6 million in 2023, 2022 and 2021, respectively. These initiatives not only boost investors' confidence but also have a positive impact on the bottom line.

ManpowerGroup's current ratio at the end of first-quarter 2024 was pegged at 1.17, higher than the 1.16 reported in the preceding quarter. A current ratio of more than 1 often indicates that the company will easily pay off its short-term obligations.

Headwinds

Rising expenses, as a result of investments in digital initiatives and restructuring, might affect ManpowerGroup's bottom line. In 2023, the company's selling, general and administrative expenses increased 3.7% on a year-over-year basis.

ManpowerGroup operates in 75 countries and territories around the globe. The risks associated with foreign currency exchange rate fluctuations prevail over the company due to its vast international presence.

Zacks Rank & Stocks to Consider

ManpowerGroup currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks from the broader Zacks Business Services sector are HNI HNI and Aptiv APTV.

HNI currently sports a Zacks Rank of 1 (Strong Buy). It has a long-term earnings growth expectation of 12%. You can see the complete list of today’s Zacks #1 Rank stocks here.

HNI delivered a trailing four-quarter earnings surprise of 67.5%, on average.

Aptiv presently carries a Zacks Rank of 2 (Buy). It has a long-term earnings growth expectation of 20.7%.

APTV delivered a trailing four-quarter earnings surprise of 12.2%, on average.

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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report

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Aptiv PLC (APTV) : Free Stock Analysis Report

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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.

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