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3 Reasons to Avoid MAN and 1 Stock to Buy Instead

By: StockStory

April 10, 2025 at 05:02 AM EDT

MAN Cover Image

Shareholders of ManpowerGroup would probably like to forget the past six months even happened. The stock dropped 28.2% and now trades at $50.37. This may have investors wondering how to approach the situation.

Is there a buying opportunity in ManpowerGroup, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Despite the more favorable entry price, we're swiping left on ManpowerGroup for now. Here are three reasons why we avoid MAN and a stock we'd rather own.

Why Do We Think ManpowerGroup Will Underperform?

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE: MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

1. Core Business Falling Behind as Demand Declines

Investors interested in Professional Staffing & HR Solutions companies should track organic revenue in addition to reported revenue. This metric gives visibility into ManpowerGroup’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.

Over the last two years, ManpowerGroup’s organic revenue averaged 3.5% year-on-year declines. This performance was underwhelming and implies it may need to improve its products, pricing, or go-to-market strategy. It also suggests ManpowerGroup might have to lean into acquisitions to grow, which isn’t ideal because M&A can be expensive and risky (integrations often disrupt focus). ManpowerGroup Organic Revenue Growth

2. Revenue Projections Show Stormy Skies Ahead

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect ManpowerGroup’s revenue to drop by 5.2%, close to its 5.1% annualized declines for the past two years. This projection is underwhelming and suggests its newer products and services will not lead to better top-line performance yet.

3. EPS Trending Down

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Sadly for ManpowerGroup, its EPS declined by 10% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.

ManpowerGroup Trailing 12-Month EPS (Non-GAAP)

Final Judgment

We cheer for all companies serving everyday consumers, but in the case of ManpowerGroup, we’ll be cheering from the sidelines. Following the recent decline, the stock trades at 11.2× forward price-to-earnings (or $50.37 per share). This valuation tells us a lot of optimism is priced in - you can find better investment opportunities elsewhere. We’d suggest looking at a safe-and-steady industrials business benefiting from an upgrade cycle.

Stocks We Would Buy Instead of ManpowerGroup

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.

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