ManpowerGroup (NYSE:MAN) Inc.’s MAN shares have appreciated 12% over the past year. The company’s earnings are expected to increase 94.3% in 2021 and 20.2% in 2022, year over year.
Factors That Auger Well
The recent acquisition of ettain group has expanded ManpowerGroup’s IT services in the financial and health care sectors, enhancing the company’s diversification in the United States, and increasing its strength in the digital workspace and business transformation practice areas. The company’s Managed Service Provider business remained resilient to the coronavirus crisis, experiencing double-digit gross profit growth in the third quarter of 2021.
While restructuring actions taken in the third quarter will weigh on the top line over the next few quarters, they are expected to help the company shift toward more specialized staffing and an improved margin profile over time in its Mexican business.
ManpowerGroup's cash and cash equivalent balance of $1.61 billion at the end of third-quarter 2021 was well above the long-term debt level of $583 million, 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 payment and share repurchases.
Zacks Rank and Stocks to Consider
ManpowerGroup currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Services sector can consider stocks like CBIZ (NYSE:CBZ) CBZ, Korn Ferry (NYSE:KFY) KFY and Accenture (NYSE:ACN) ACN.
CBIZ has an expected earnings growth rate of 23.2% for 2021. CBZ has a trailing four-quarter earnings surprise of 49.8%, on average.
CBIZ’s shares have surged 44.6% in the past year. The stock sports a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Korn Ferry has an expected earnings growth rate of 130.7% for fiscal 2022. KFY has a trailing four-quarter earnings surprise of 41.3%, on average.
Korn Ferry’s shares have surged 45.8% in the past year. KFY sports a Zacks #1 Rank.
Accenture has an expected earnings growth rate of around 19.8% for the current year. It has a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 33.3% in the past year. It has a long-term earnings growth of 10%. ACN sports a Zacks #1 Rank.
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