ManpowerGroup: A Value Stock That Could Be a Big Winner

NYSE: MAN | ManpowerGroup  News, Ratings, and Charts

MAN – Aside from the health implications, one major effect the pandemic has had on the country is a massive labor shortage. More and more companies are having a hard time hiring people. That’s where staffing companies like ManpowerGroup (MAN) come in. Not only do the company’s prospects look great, but the stock is also high undervalued.

ManpowerGroup (MAN) is one of the seven stocks featured in a new special report. Claim your copy now! 7 SEVERELY Undervalued Stocks.

ManpowerGroup (MAN) is one of the largest companies in the global staffing industry. It serves each main staffing category–temporary, permanent, and project-based, and offers a suite of HR outsourcing and outplacement services.

The company has an established network of 2,500 offices in 75 countries and territories. It provides its staffing solutions through its four major brands – Manpower, which includes contingent staffing and permanent recruitment; ManpowerGroup Solutions, outsourcing services for large-scale recruiting; and Experis, professional resourcing and project-based workforce solutions.

We all know there is a massive labor shortage right now. That’s excellent news for staffing companies such as MAN that get hired to find workers. In addition to the labor shortage, the company also benefits from the shift toward outsourcing recruitment as employers look to optimize labor efficiency and manage expenses.

The company has been looking to increase productivity and efficiency through investments in technology. For instance, it is implementing front office systems and cloud-based and mobile applications.

MAN is also making enhancements to its global technology infrastructure across several of its markets and investing in the digitalization of its workforce solutions. The company has also benefited from acquisitions.

Acquisitions have helped support its revenue growth. For instance, the company acquired the Switzerland Manpower franchise in 2019, LearnUp in 2017, and CIBER, Inc, a global information technology consulting company, in 2016. These buyouts help strengthen its portfolio.

MAN had a solid second quarter as global vaccination rates continued to increase. This led to accelerating hiring activity in many of the markets where MAN operates. In fact, most of the company’s largest markets have vaccination rates at or above 40%, with some above 50%.

Second-quarter revenue rose 41% year over year and 7% sequentially. The Southern Europe region had the best growth as revenue rose 64% year over year. France was especially strong, as sales rose 83% year over year and 13% sequentially. France’s economy saw a strong rebound, and this is expected to continue.

MAN also provided third-quarter guidance, where it forecasted revenue to rise between 14% and 18% and earnings between $1.86 and $1.94. The global recovery is expected to continue to drive hiring demand, and the company is in a strong position to capitalize on both temporary and permanent placements.

The tight labor markets also allow the company to reskill and upskill candidates, which makes it easier for them to get placed on assignments. Plus, hiring activity should remain strong in the near term with vaccination rates increasing.

The company has an overall grade of B, translating into a Buy rating in our POWR Ratings system. MAN has a Growth Grade of A due to growth in the most recent quarter and forecasted growth. Analysts expect earnings to rise 58.3% in the current quarter and 92.1% for the year.

The company also has a Value Grade of A due to MAN’s attractive valuation metrics. For instance, the stock has a forward P/E of 17.24, and its price-to-sales ratio of 0.3 is well below the industry average of 2.2.

We also provide Momentum, Stability, Sentiment, and Quality grades for MAN, which you can find here. MAN is ranked #5 in the A-rated Outsourcing – Staffing Services industry. You can find more top stocks in this top-rated industry by clicking here.  

Want to Find More Great Value Stocks? 

Then get your hands on the just-released special report featuring the best value stocks for 2021. Just click the link below to claim your copy!

7 SEVERELY Undervalued Stocks


MAN shares were trading at $120.31 per share on Wednesday morning, down $1.11 (-0.91%). Year-to-date, MAN has gained 34.79%, versus a 21.79% rise in the benchmark S&P 500 index during the same period.


About the Author: David Cohne


David Cohne has 20 years of experience as an investment analyst and writer. Prior to StockNews, David spent eleven years as a consultant providing outsourced investment research and content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
MANGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Bull vs. Bear Contingency Plans

The S&P 500 (SPY) has endured its 2nd trip down towards bear market territory before a bounce ensued. This last downturn is thanks to the ugly earnings from both WalMart and Target. This is indeed a precarious time and we have to contemplate the odds of bull vs. bear market and the related contingency plans we would enact in our portfolios. 40 year investment veteran, Steve Reitmeister, shares that and more in the commentary below…

:  |  News, Ratings, and Charts

5 Stocks to Buy on the Next Market Pullback

Persisting factors like the multi-decade high inflation, deepening supply chain constraints, and the expectation of a recession due to the Federal Reserve’s aggressive policy tightening could lead to a further market pullback. So, it could be wise to bet on fundamentally sound stocks Nutrien (NTR), Centene (CNC), Itochu (ITOCY), Steel Dynamics (STLD), and Teck Resources (TECK) on every dip they witness in the near term. Let’s discuss.

:  |  News, Ratings, and Charts

Off Target?

There was reason for optimism earlier in the week as the S&P 500 (SPY) advanced nicely after skirting bear market territory. But then on Tuesday WalMart had shockingly poor earnings which was easily ignored. Unfortunately the next day Target reported even worse results and the investment world took notice with a 4% sell off. That rout extended through Friday as we briefly blew past the bear market dividing line at 3,855 to a low of 3,810. Then a late rally ensued ending the session back above bear territory at 3,901. Does WalMart and Target earnings truly change our outlook on the economy and what it means for the stock market? That is the key topic we need to explore this week in our POWR Value commentary. Read on below for more…

:  |  News, Ratings, and Charts

Daqo New Energy is Our Growth Stock of the Week

2022 has been very challenging for investors. Energy is one of the few themes that have worked. Investors should consider the alternative energy sector as many of these stocks are quite cheap and could see a surge in growth due to several catalysts. Read on to find out why Daqo New Energy (DQ) is our growth stock of the week.

:  |  News, Ratings, and Charts

Off Target?

There was reason for optimism earlier in the week as the S&P 500 (SPY) advanced nicely after skirting bear market territory. But then on Tuesday WalMart had shockingly poor earnings which was easily ignored. Unfortunately the next day Target reported even worse results and the investment world took notice with a 4% sell off. That rout extended through Friday as we briefly blew past the bear market dividing line at 3,855 to a low of 3,810. Then a late rally ensued ending the session back above bear territory at 3,901. Does WalMart and Target earnings truly change our outlook on the economy and what it means for the stock market? That is the key topic we need to explore this week in our POWR Value commentary. Read on below for more…

Read More Stories

More ManpowerGroup (MAN) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All MAN News