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ManpowerGroup Gains From Digitization of Workforce Solutions

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ManpowerGroup Inc. (MAN - Free Report) has had a decent run in the past three months. The company’s shares have gained 5.5% compared with the 4.4% rally of its industry and the 4.6% rise of the Zacks S&P 500 composite.

MAN reported mixed second-quarter 2024 results. Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year on a reported basis and 3% on a constant-currency basis.

How is ManpowerGroup Doing?

MAN is a comprehensive workforce solution partner, supporting businesses in finding, developing and managing talent via recruitment, training, outsourcing and consulting services. Experis, an arm of ManpowerGroup, with its expertise in IT talent, addresses the crucial requirement for tech professionals in the current market.

The company’s top line is expected to grow on the back of acquisitions. MAN has acquired and invested in companies across the globe. In 2022, Tingari, a France-based talent solution company, was acquired to support ManpowerGroup's objective to achieve full employment in France. The acquisition of ettain Group in 2021 augmented ManpowerGroup's strategy of diversifying its business mix into higher growth and value services. ettain has become part of MAN's Experis business, increasing strength in Financial Services, Healthcare and Government clients.

ManpowerGroup’s bottom line is benefiting from strong pricing and cost control. It aims at increasing productivity and efficiency by making significant investments in technology. It has implemented front office systems, cloud-based and mobile applications, and made improvements to its global technology infrastructure across several markets. MAN’s investments in digitization workforce solutions significantly improve employee efficiency and experience.

We are impressed with the company’s commitment to shareholder returns. It makes ManpowerGroup a reliable stock for investors to compound wealth in the long run. In terms of share repurchases, the company returned $179.8 million in 2023, $270 million in 2022 and $210 million in 2021.

The MAN stock is a great pick for dividend-seeking investors. MAN paid out dividends of $144.3 million in 2023, $139.9 million in 2022 and $136.6 million in 2021. The strategy to conduct share repurchases and pay out dividends not only instills investors' confidence but also positively impacts the bottom line.

ManpowerGroup Inc. Dividend Yield (TTM)

 

ManpowerGroup Inc. Dividend Yield (TTM)

ManpowerGroup Inc. dividend-yield-ttm | ManpowerGroup Inc. Quote

Zacks Rank & Other Stocks to Consider

MAN carries a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks in the broader Zacks Business Services sector are Docusign(DOCU - Free Report) and Heidrick & Struggles International (HSII - Free Report) .

Docusign sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DOCU has a long-term earnings growth expectation of 9.3%. It delivered a trailing four-quarter earnings surprise of 18.3%, on average.

Heidrick & Struggles International flaunts a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 16%.

HSII delivered a trailing four-quarter earnings surprise of 11.7%, on average.


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