Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $63.2 million.
- MAN has traded 196,417 shares today.
- MAN traded in a range 204.4% of the normal price range with a price range of $3.87.
- MAN traded above its daily resistance level (quality: 52 days, meaning that the stock is crossing a resistance level set by the last 52 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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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 1.5%. MAN has a PE ratio of 12.7. Currently there are 8 analysts that rate ManpowerGroup a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for ManpowerGroup has been 710,700 shares per day over the past 30 days. ManpowerGroup has a market cap of $5.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.22 and a short float of 1.5% with 1.28 days to cover. Shares are down 4.8% year-to-date as of the close of trading on Thursday.
rates ManpowerGroup as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- MANPOWERGROUP has improved earnings per share by 36.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MANPOWERGROUP increased its bottom line by earning $3.61 versus $2.48 in the prior year. This year, the market expects an improvement in earnings ($5.27 versus $3.61).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 37.8% when compared to the same quarter one year prior, rising from $94.70 million to $130.50 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 4.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MAN's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.45, which illustrates the ability to avoid short-term cash problems.
- You can view the full ManpowerGroup Ratings Report.