Yahoo Finance Is ManpowerGroup (MAN) a Great Value Stock Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is ManpowerGroup (MAN). 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 10.38. This compares to its industry's average Forward P/E of 12.56. Over the last 12 months, MAN's Forward P/E has been as high as 19.05 and as low as 9.35, with a median of 13.35.
Investors will also notice that MAN has a PEG ratio of 1.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MAN's industry currently sports an average PEG of 1.50. MAN's PEG has been as high as 1.32 and as low as 0.48, with a median of 0.69, all within the past year.
Another notable valuation metric for MAN is its P/B ratio of 2.01. 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. MAN's current P/B looks attractive when compared to its industry's average P/B of 3.06. Over the past year, MAN's P/B has been as high as 2.86 and as low as 1.84, with a median of 2.42.
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 0.25. This compares to its industry's average P/S of 0.62.
Investors could also keep in mind Resources Connection (RGP), an Staffing Firms stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Resources Connection sports a P/B ratio of 1.65 as well; this compares to its industry's price-to-book ratio of 3.06. In the past 52 weeks, RGP's P/B has been as high as 1.87, as low as 1.33, with a median of 1.55.
These are only a few of the key metrics included in ManpowerGroup and Resources Connection strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MAN and RGP look like an impressive value stock at the moment.
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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
Resources Connection, Inc. (RGP) : Free Stock Analysis Report
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