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Is ManpowerGroup (MAN) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

ManpowerGroup (MAN - Free Report) is a stock many investors are watching right now. MAN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.27. This compares to its industry's average Forward P/E of 13.70. Over the past year, MAN's Forward P/E has been as high as 12.28 and as low as 7.34, with a median of 10.07.

We should also highlight that MAN has a P/B ratio of 2.07. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.58. Over the past 12 months, MAN's P/B has been as high as 2.20 and as low as 1.45, with a median of 1.94.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MAN has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.4.

Finally, investors should note that MAN has a P/CF ratio of 9.33. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MAN's P/CF compares to its industry's average P/CF of 11.22. Over the past year, MAN's P/CF has been as high as 9.93 and as low as 5.80, with a median of 8.24.

These are just a handful of the figures considered in ManpowerGroup's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MAN is an impressive value stock right now.


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