Why You Should Keep ManpowerGroup Stock in Your Portfolio Now

Core Insights - ManpowerGroup Inc. (MAN) is experiencing challenges due to weak demand in certain geographies, impacting growth in 2024, despite having a strong Growth Score of B and an expected earnings increase of 14% year over year for 2025 [1] Group 1: Business Performance and Strategy - ManpowerGroup provides comprehensive workforce solutions, including recruitment, training, outsourcing, and consulting services, which helps mitigate concentration risks through a diversified business mix and geographic footprint [2] - The company is focusing on strong pricing and cost control while investing significantly in technology to enhance productivity and efficiency, including cloud-based applications and global technology infrastructure [3] - Recent acquisitions, such as Tingari in 2022 and ettain in 2021, have strengthened ManpowerGroup's Talent Solutions brand and its Experis business, particularly in Financial Services, Healthcare, and Government sectors [3] Group 2: Shareholder Returns - ManpowerGroup has demonstrated a commitment to shareholder returns, repurchasing $179.8 million in shares in 2023,$270 million in 2022, and $210 million in 2021, alongside dividend payments of$144.3 million, $139.9 million, and$136.6 million over the same period [4] - The anticipated Fed rate cuts may create a more favorable economic environment for growth, potentially leading to increased hiring and bolstering ManpowerGroup's income and cash flow for stable dividend payouts [4] Group 3: Challenges and Financial Position - The company faces significant challenges, particularly in Europe and North America, where hiring remains sluggish due to a weak macroeconomic environment and political uncertainties, especially in France [5] - ManpowerGroup's liquidity position, indicated by a current ratio of 1.15 at the end of Q3 2024, is below the industry average of 1.46, suggesting a need for monitoring despite being above 1, which typically indicates a capacity to meet short-term obligations [6] Group 4: Market Position and Comparisons - ManpowerGroup currently holds a Zacks Rank of 3 (Hold), with better-ranked stocks in the Zacks Business Services sector including UiPath (Rank 1) and RB Global, Inc. (Rank 1), both of which have higher long-term earnings growth expectations [7][8]