Barbarian At The Gate: ManpowerGroup (MAN)

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.

Trade-Ideas LLC identified ManpowerGroup ( MAN) 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 $43.7 million.
  • MAN has traded 102,616 shares today.
  • MAN traded in a range 222.3% of the normal price range with a price range of $3.03.
  • MAN traded above its daily resistance level (quality: 531 days, meaning that the stock is crossing a resistance level set by the last 531 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MAN with the Ticky from Trade-Ideas. See the FREE profile for MAN NOW at Trade-Ideas

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 10 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 660,000 shares per day over the past 30 days. ManpowerGroup has a market cap of $6.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.53 and a short float of 0.8% with 1.16 days to cover. Shares are up 28.9% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • MAN's debt-to-equity ratio is very low at 0.15 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 1.43, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 243.87% to $22.30 million when compared to the same quarter last year. In addition, MANPOWERGROUP has also vastly surpassed the industry average cash flow growth rate of 19.73%.
  • 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.
  • MANPOWERGROUP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MANPOWERGROUP increased its bottom line by earning $5.29 versus $3.61 in the prior year. For the next year, the market is expecting a contraction of 3.1% in earnings ($5.13 versus $5.29).

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Ackman Investment Buoys Lowe's; DraftKings Responds to FanDuel Merger -- ICYMI

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet