Manpower (NYSE: MAN) is a world leader in the employment industry, offering businesses a full range of staffing-related services. These include permanent, temporary and contract recruitment; employee assessment and selection; training; outplacement; outsourcing and consulting. Manpower maintains a network of about 4,500 offices in 80 countries, enabling the firm to serve the needs of some 400,000 clients per year. It operates under the brands Manpower, Manpower Professional, Elan, Jefferson Wells and Right Management.

Investors were pleased last week, when the company reported Q1 EPS of 94 cents and revenues of $5.39 billion. Analysts had been looking for 82 cents and $5.26 billion. In discussing the results, the CEO particularly noted strength in European markets. Management also guided Q2 EPS to $1.47-$1.51, versus consensus of $1.39. Lehman Brothers subsequently reiterated its "overweight" recommendation on the stock and boosted its price target to $76.

MAN shares popped into a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with three "strong buys", four "buys" and eight "holds". The MAN P/E ratio (10.87), PEG ratio (0.80), Price to Sales ratio (0.24), Price to Book ratio (1.84), Price to Cash Flow ratio (8.62), Price to Free Cash Flow ratio (16.95), Sales Growth rate (18.76%) and EPS Growth rate (36.23%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $45.70 and $97.28. A stop-loss of $54.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.