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6 Reasons You Should Bet on ManpowerGroup (MAN) Stock Now

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ManpowerGroup Inc. (MAN - Free Report) is a workforce solutions and services provider that has performed extremely well in the past year and has the potential to sustain the momentum in the near term. If you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes ManpowerGroup an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that its shares have gained 50.2% over the past year, significantly outperforming the 25.9% growth of the Zacks S&P 500 composite.

Solid Rank & VGM Score: ManpowerGroup currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.

Northward Estimate Revisions: Three estimates for ManpowerGroup for 2021 have moved north over the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 0.6% in the past 30 days.

Positive Earnings Surprise History: ManpowerGroup has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 58%, on average.

Strong Growth Prospects: The Zacks Consensus Estimate for ManpowerGroup’s 2021 earnings, $7.1 per share, reflects year-over-year growth of 93.5%. Earnings are expected to register 21.6% growth in 2022. The stock has a long-term expected earnings per share growth rate of 24.2%.

Driving Factors: In a bid to increase its productivity and efficiency, ManpowerGroup is making significant investments in technology. It is implementing front-office systems, cloud-based and mobile applications, and making enhancements to its global technology infrastructure across several markets. The company is also investing in digitalization of its workforce solutions.

Commitment to shareholder returns makes ManpowerGroup a reliable stock for investors to compound wealth over long term. The company returned $264.7 million, $203 million and $500.7 million through share repurchases and made dividend payments of $129.1 million, $129.3 million and $127.3 million, respectively, in 2020, 2019 and 2018. These initiatives not only instill investors' confidence on the stock but also positively impact earnings per share.

Other Stocks to Consider

Some other stocks worth considering in the broader Zacks Business Services sector are Interpublic Group of Companies (IPG - Free Report) , Cross Country Healthcare (CCRN - Free Report)  and Genpact (G - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term expected earnings per share (three to five years) growth rate for Interpublic, Cross Country Healthcare and Genpact is pegged at 11.5%, 9.9% and 14.7%, respectively.

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