Today's Roof Leaker Stock Is ManpowerGroup (MAN)

Trade-Ideas LLC identified ManpowerGroup (MAN) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

ManpowerGroup

(

MAN

) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified ManpowerGroup as such a stock due to the following factors:

  • MAN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $62.9 million.
  • MAN has traded 130,951 shares today.
  • MAN is trading at 2.15 times the normal volume for the stock at this time of day.
  • MAN crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on MAN:

ManpowerGroup Inc. provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The stock currently has a dividend yield of 1.8%. MAN has a PE ratio of 17. Currently there are 9 analysts that rate ManpowerGroup a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for ManpowerGroup has been 713,700 shares per day over the past 30 days. ManpowerGroup has a market cap of $6.5 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.45 and a short float of 2.6% with 2.42 days to cover. Shares are up 27.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates ManpowerGroup as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, MAN's share price has jumped by 32.15%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.42, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 101.81% to $244.00 million when compared to the same quarter last year. In addition, MANPOWERGROUP has also vastly surpassed the industry average cash flow growth rate of 32.17%.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Professional Services industry and the overall market on the basis of return on equity, MANPOWERGROUP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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