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Is ManpowerGroup (MAN) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is ManpowerGroup (MAN - Free Report) . MAN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 13.80, which compares to its industry's average of 15.06. Over the past 52 weeks, MAN's Forward P/E has been as high as 19.05 and as low as 13.02, with a median of 16.52.

Investors will also notice that MAN has a PEG ratio of 0.57. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MAN's industry has an average PEG of 0.82 right now. MAN's PEG has been as high as 11.95 and as low as 0.54, with a median of 0.80, all within the past year.

Investors should also recognize that MAN has a P/B ratio of 2.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.75. Within the past 52 weeks, MAN's P/B has been as high as 2.86 and as low as 1.49, with a median of 2.41.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MAN has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.67.

Finally, investors will want to recognize that MAN has a P/CF ratio of 18.84. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. MAN's P/CF compares to its industry's average P/CF of 21.43. Within the past 12 months, MAN's P/CF has been as high as 59.65 and as low as 17.68, with a median of 33.07.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ManpowerGroup is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MAN feels like a great value stock at the moment.


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