Economic headlines are a big growth factor for Manpower (MAN) too. This mid-cap staffing firm offers businesses human resources services through more than 4,000 offices across the world. Whether clients are looking for temp help or they're looking to fill a full-time position, Manpower wants to be a part of the hiring process -- and in a job market where companies are hiring with some caution, Manpower's services make a whole lot of sense.
One of the biggest benefits to Manpower is the fact that most of its revenues aren't earned here at home. In fact, 90% of sales come from abroad. Most of the firm's placement income is earned in labor-friendly markets like France, where MAN has far-reaching worker protection laws positioned in its favor. That global positioning also makes Manpower a stellar choice for global clients who are looking for a single provider of staffing services, something that more localized rivals can't offer.Manpower's many staffing lines are a double-edged sword for the firm. While they diversify sales and give the firm a bigger potential market, they also make Manpower look less attractive when compared to more niche staffing firms that only focus on placing healthcare, IT, or management professionals. For that reason, Manpower has to compete more on cost, and margins are necessarily slimmer than at peers. That said, a slipping global unemployment rate bodes well for the firm in the longer-term, especially if companies are hesitant to hire full time at the first sign of economic strength. With rising analyst sentiment in shares of Manpower, we're betting on shares this week. Earnings on Jan. 30 could be a big catalyst for this stock.
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