The Math Shows RWK Can Go To $130
ETF Target Price Analysis: The Invesco S&P MidCap 400 Revenue ETF (RWK) has an implied analyst target price of $130.11, indicating a potential upside of 10.63% from its current trading price of $117.61.
Individual Stock Upside Potential: Notable underlying holdings such as Vishay Intertechnology, Gentex Corp., and ManpowerGroup show significant upside potential, with expected increases of 22.84% to 23.32% based on their respective analyst target prices compared to recent share prices.
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- Rating Upgrade: Argus has upgraded ManpowerGroup's rating from Hold to Buy, reflecting analysts' optimistic expectations regarding the recent negative earnings trend beginning to improve.
- Revenue Growth Improvement: In the most recent quarter, ManpowerGroup's revenue growth has improved while margins have remained steady, demonstrating the company's resilience amid challenging economic conditions.
- Management Outlook: The company's management anticipates a return to growth in Q1 2026, indicating that market demand is improving and that cost-optimization strategies have been implemented to address challenges.
- Attractive Valuation: With a current P/E ratio of 7.4X, Argus considers ManpowerGroup's valuation attractive and has set a 12-month price target of $42, suggesting a potential rebound in share price.
- Stable Revenue Growth: ManpowerGroup reported fourth-quarter revenues of $4.7 billion and system-wide revenues of $5.1 billion, reflecting a 2% organic growth that indicates stability in enterprise demand and effective cost optimization.
- Effective Cost Control: The company achieved a 4% year-over-year reduction in SG&A expenses in the fourth quarter and recorded its first positive operating profit in Northern Europe, demonstrating ongoing efforts in cost management and strategic significance.
- AI Tool Application Boost: By expanding AI recruitment toolkits, ManpowerGroup increased placement rates by 7%, which not only enhances the company's competitive position in the market but also lays a foundation for future business growth.
- Optimistic Future Outlook: The company forecasts earnings per share for Q1 2026 to be between $0.45 and $0.55, with organic revenue growth expected to achieve a 1% increase, reflecting management's confidence in future growth prospects.
Company Overview: MANPOWERGROUP is a global leader in workforce solutions, providing services such as recruitment, staffing, and talent management.
Financial Performance: In Q4, the company reported earnings per share (EPS) of $0.64, indicating a focus on financial stability and growth.
Market Position: MANPOWERGROUP continues to strengthen its position in the labor market, adapting to changing workforce needs and trends.
Future Outlook: The company is poised for future growth, leveraging technology and innovative solutions to meet client demands in a competitive environment.
- Strong Earnings Performance: ManpowerGroup reported a Q4 Non-GAAP EPS of $0.92, beating expectations by $0.10, indicating robust performance in a competitive labor market.
- Significant Revenue Growth: The company achieved $4.7 billion in revenue for Q4, a 6.8% year-over-year increase that surpassed expectations by $70 million, reflecting sustained global staffing demand.
- Currency Impact Analysis: On a constant currency basis, revenues increased by 1% compared to the prior year, while organic constant currency revenues rose by 2%, demonstrating the company's resilience amid currency fluctuations.
- Optimistic Outlook: ManpowerGroup anticipates Q1 diluted EPS between $0.45 and $0.55, factoring in a favorable currency impact of 6 cents and a 43% effective tax rate, showcasing confidence in future performance.
- Net Earnings Growth: ManpowerGroup reported diluted earnings per share of $0.64 for Q4 2025, a 36.17% increase from $0.47 in the prior year, despite facing restructuring costs and non-cash currency losses due to Argentina's hyperinflation, resulting in net earnings of $30.2 million, showcasing the company's resilience in adversity.
- Revenue Performance: The fourth quarter revenue reached $4.7 billion, a 7% year-over-year increase, but only a 1% rise in constant currency after excluding restructuring and currency impacts, reflecting gradual recovery in market demand and effective execution of the company's strategic initiatives.
- Annual Loss Situation: For the full year 2025, the company reported a net loss of $13.3 million, or $0.29 per share, contrasting sharply with a net income of $145.1 million in 2024, highlighting challenges faced during the transformation, particularly from non-cash goodwill and intangible asset impairments.
- Future Outlook: The company anticipates diluted earnings per share in Q1 2026 to be between $0.45 and $0.55, including an estimated favorable currency impact of 6 cents, indicating that with improving market demand, ManpowerGroup will continue to optimize its market strategies to enhance profitability.
- Revenue Growth: ManpowerGroup reported revenues of $4.7 billion for Q4 2025, reflecting a 7% year-over-year increase, with a 2% organic growth, indicating stabilization in North America and Europe, particularly strong growth in Italy.
- Net Earnings Improvement: The company achieved diluted earnings per share of $0.64, up 36% from $0.47 in the prior year, despite restructuring costs and hyperinflation impacts in Argentina, resulting in net earnings of $30.2 million, showcasing improved profitability.
- Stable Gross Margin: The gross profit margin stood at 16.3%, reflecting softer-than-expected permanent recruitment activity in Europe, yet overall staffing margin trends remained steady, indicating effective cost management by the company.
- Strong Cash Flow: Operating cash flow for the quarter was $179 million, demonstrating ongoing improvements in cash management and operational efficiency, while successfully refinancing €500 million in debt, enhancing financial flexibility.









