StockStory Favors Stride and Huron Over ManpowerGroup

StockStory highlighted Stride and Huron as its favored business services stocks, while flagging ManpowerGroup as a risk. The publisher pointed to growth and improving cash flow at the first two companies, and declining sales and earnings per share at the third.

Stride, an education technology company, grew revenue 11.1% annually over the past two years, according to StockStory. Its free cash flow margin, a measure of cash left after operating costs and investment, increased by 5.8 percentage points over five years. The publisher cited an $77.76 share price and an 8.7 forward price-to-earnings ratio.

Huron Consulting Group posted annual revenue growth of 16.4% over five years, StockStory said. It also cited 23% annual earnings-per-share growth over two years, aided by share buybacks, and a 7.6 percentage-point increase in free cash flow margin over five years. Huron shares were listed at $156.82, or 16.3 times forward earnings.

For ManpowerGroup, StockStory cited an annual 1.2% decline in sales over five years and a 13.8% annual drop in earnings per share. The staffing and workforce management company was listed at $55.62 per share and 13.7 times forward earnings.

The business services industry returned 22.1% over the past six months, compared with a 16.6% gain for the S&P 500, according to the article. StockStory cautioned that companies in the sector can be sensitive to changes in the broader economy.