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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 12.09. This compares to its industry's average Forward P/E of 15.88. Over the past 52 weeks, MAN's Forward P/E has been as high as 14.11 and as low as 10.55, with a median of 12.76.

MAN is also sporting a PEG ratio of 1.51. 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 PEG compares to its industry's average PEG of 1.59. Over the last 12 months, MAN's PEG has been as high as 7.77 and as low as 0.53, with a median of 1.50.

Another notable valuation metric for MAN is its P/B ratio of 1.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.13. Over the past year, MAN's P/B has been as high as 1.74 and as low as 1.41, with a median of 1.59.

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 0.19. This compares to its industry's average P/S of 0.36.

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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