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ManpowerGroup Inc. MAN performed well in the past year and holds the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
Share Price Movement: A glimpse at the company’s price trend reveals that its shares have surged 69.4% in the past year compared with 71.8% rise of the industry it belongs to.
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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 stock seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Six estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ optimism in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 14% in the past 60 days.
Positive Earnings Surprise History: ManpowerGroup has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 57%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at $6.26, which suggests year-over-year growth of 70.6%. Moreover, earnings are expected to register 29.3% growth in 2022. The stock’s long-term expected earnings per share (EPS) growth rate is pegged at 21.6%.
Driving Factors: Commitment to shareholder returns makes ManpowerGroup a reliable way for investors to compound wealth over long term. Recently, the company’s board declared a semi-annual dividend of $1.26 per share. This is a 7.7 % increase from the previous semi-annual dividend of $1.17 per share. The dividend is payable on Jun 15 to shareholders of record as of Jun 1. Notably, the company made dividend payments of $129.1 million, $129.3 million and $127.3 million, respectively in 2020, 2019 and 2018, respectively. These initiatives not only instil investors' confidence but also positively impact earnings per share.
ManpowerGroup's cash and cash equivalent balance of $1.52 billion at the end of first-quarter 2021 was well above the total debt level $1.18 billion, underscoring that the company has enough cash to meet its debt burden. A strong cash position enables the company to pursue strategic acquisitions, invest in growth initiatives and return cash through regular quarterly dividend payout and share repurchases.
Other Stocks to Consider
Investors interested in the broader Zacks Business Services sector can also consider stocks like Equifax Inc. EFX, CRA International, Inc. CRAI and Cross Country Healthcare CCRN, all carrying a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Equifax, CRA International and Cross Country Healthcare is pegged at 14%, 15.5% and 10.5%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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