Do You Believe in the Opportunity in ManpowerGroup (MAN)?

Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here.  In the second quarter, Palm Valley Capital Fund appreciated 0.82% compared to a 4.90% gain for the S&P SmallCap 600 and a 7.28% rise in the Morningstar Small Cap Total Return Index. Cash was 76.7% of Fund assets at the start of the quarter and 73.6% at the conclusion. Year-to-date, the fund gained 1.39% compared to a 4.46% decline for the S&P SmallCap 600 and a 0.75% rise for the Morningstar Small Cap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Palm Valley Capital Fund highlighted stocks such as ManpowerGroup Inc. (NYSE:MAN). ManpowerGroup Inc. (NYSE:MAN) offers workforce solutions and services globally. The one-month return of ManpowerGroup Inc. (NYSE:MAN) was 0.61%, and its shares lost 35.16% of their value over the last 52 weeks. On July 7, 2025, ManpowerGroup Inc. (NYSE:MAN) stock closed at $42.96 per share, with a market capitalization of $1.988 billion.

Palm Valley Capital Fund stated the following regarding ManpowerGroup Inc. (NYSE:MAN) in its second quarter 2025 investor letter:

“The Fund’s three largest detractors in the quarter were ManpowerGroup (ticker: MAN), Carter’s (ticker: CRI), and Kelly Services (ticker: KELYA). ManpowerGroup’s stock was battered in April after the company announced a softer-than-expected outlook for the second quarter, which included a forecasted revenue decline between 1% and 5%. Despite revenues holding up decently, operating profit has fallen more than other leading staffers like Adecco and Randstad. In our opinion, current profitability is below normalized levels. The stock traded to its lowest level in 13 years. Shares are selling for 5x normalized operating earnings, and we believe the opportunity in the stock is substantial.”

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ManpowerGroup Inc. (NYSE:MAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held ManpowerGroup Inc. (NYSE:MAN) at the end of the first quarter, compared to 37 in the previous quarter. In the first quarter, ManpowerGroup Inc. (NYSE:MAN) reported revenue of $4.1 billion, down 5% year-over-year in constant currency. While we acknowledge the potential of ManpowerGroup Inc. (NYSE:MAN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered ManpowerGroup Inc. (NYSE:MAN) and shared the list of oversold global stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of MAN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.