Bull of the Day: ManpowerGroup (MAN) - Bull of the Day
Zacks By Tracey Ryniec
3 hours ago
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ManpowerGroup Inc. (MAN) is expanding in Europe as the global job market continues to heat up. Analysts raised full year estimates on this Zacks Rank #1 (Strong Buy) in just the last week.
ManpowerGroup, which is headquartered in Milwaukee, is a staffing company with offices around the globe. It has been expanding globally for some time. France is still one of its largest markets, providing 25% of its revenue.
Acquires 7S Group
On June 12, ManpowerGroup announced it was acquiring 7S Group, a German provider of human resource services focusing on the skilled trades including engineering and IT, for 136.5 million euros.
While ManpowerGroup already had offices in Germany, this significantly expands the company's reach in the key Eurozone country.
Estimates Rise
ManpowerGroup is expected to report second quarter results on July 21, before the market opens.
But estimates have been rising even before the earnings report, which is extremely bullish. Analysts are usually risk adverse and will not raise estimates into an earnings report unless they're confident that things are going really well.
The French economy has been on the mend. In the first quarter, the company's growth in France rose 3.8%. French business accelerated at its fastest pace since the fourth quarter of 2011.
The US economy also appears on track as weekly and monthly jobless rates continue to show strength in the job market.
The 2015 full year estimate has jumped 3 cents in the last week to $5.14 from $5.11. Estimates have also been raised in the last week for 2016.
Earnings are expected to return to growth in 2016 with earnings growth of 14%.
ManpowerGroup hasn't been immune to the weakening Euro. It's one of the reasons for falling earnings this year.
Perfect Earnings Surprise Record
ManpowerGroup has put together quite a string of earnings surprises, going back five years.
Will it keep its string of beats going next week?
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Still Has Attractive Valuations
Despite trading at new 5-year highs, the shares are not overpriced.
ManpowerGroup is trading with a forward P/E of 18 which puts it in line with the S&P 500.
It also has a price-to-sales ratio of just 0.4. A P/S ratio under 1.0 usually indicates value.
For investors looking to add a staffing company to their portfolios now that the global economy is recovering, ManpowerGroup is one to keep on the short list.
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