Staffing firm Manpower Group (MAN) saw its shares tumble this summer, and they have only partially recovered. That's because this Wisconsin-based firm also has a great deal of exposure to Europe, which accounts for 66% of sales.
Still, that exposure hasn't hurt results as badly as you'd expect. In the most recent, Manpower noted that European results were up in every country compared to a year ago. And that enabled the company to beat EPS forecasts by more than 10%.Make no mistake, the European job market will lag the U.S. job market. Analysts expect U.S. employment to keep building from here, but don't expect that to be the case in Europe until at least the second half of 2012. Analysts think Manpower's EPS will drop around 5% this year to around $3.10. Merrill Lynch has the lowest EPS forecast on Wall Street, anticipating EPS of just $2.70, but it also thinks results will sharply improve after that, with EPS hitting nearly $4 by 2014. Shares of Manpower trade for roughly half of what they fetched back in 2007, and for long-term investors, this staffing stock may have the greatest upside as it slowly regains lost ground. Manpower also shows up on a list of 5 Staffing Companies With Upside in 2012.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV