Trade-Ideas LLC identified

ManpowerGroup

(

MAN

) as a "water-logged and getting wetter" (weak stocks crossing below support 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 $40.2 million.
  • MAN has traded 375,231 shares today.
  • MAN traded in a range 222.6% of the normal price range with a price range of $3.80.
  • MAN traded below its daily resistance level (quality: 35 days, meaning that the stock is crossing a resistance level set by the last 35 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' 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 negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

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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 2%. MAN has a PE ratio of 15. 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 657,100 shares per day over the past 30 days. ManpowerGroup has a market cap of $5.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.33 and a short float of 3.1% with 4.26 days to cover. Shares are down 5% year-to-date as of the close of trading on Wednesday.

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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 growth in earnings per share, 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 shows low profit margins.

Highlights from the ratings report include:

  • MANPOWERGROUP has improved earnings per share by 12.9% 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 $5.43 versus $5.29 in the prior year. This year, the market expects an improvement in earnings ($5.86 versus $5.43).
  • The current debt-to-equity ratio, 0.33, 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 1.44, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $228.70 million or 13.61% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.76%.
  • 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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