ManpowerGroup: Disappointing Q4 Outlook Is In The Price (Rating Downgrade)

Oct. 18, 2024 6:00 AM ETManpowerGroup Inc. (MAN) StockMAN
The Value Pendulum
Investing Group Leader
(11min)

Summary

  • I have downgraded ManpowerGroup to a Hold due to the company's disappointing Q4 2024 guidance, but MAN isn't a Sell considering its attractive valuation post-earnings announcement price correction.
  • MAN's Q3 2024 results met expectations, but its guidance implies a -3% YoY revenue decline and a significant drop in normalized EPS for Q4.
  • The stock's valuations are appealing, taking into account its historical trading averages and its earnings growth track record.
  • A turnaround for the Company in the medium term is likely with rate cuts, cost structure optimization, and a strategic shift to franchised operations in underperforming markets.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

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My investment rating for ManpowerGroup Inc.'s (NYSE:MAN) shares is downgraded to a Hold, as compared to a Buy previously. MAN's Q4 2024 financial guidance was below expectations, which led to almost a -10% fall in its stock price post-results announcement. On the other

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This article was written by

The Value Pendulum
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The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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