Buy On Assignment (ASGN) AND ManpowerGroup (MAN) as U.S. Temp Penetration Reaches All-Time High In May, Piper Jaffray Says

Piper Jaffray analyst George Tong said they are buyers of On Assignment (NYSE: ASGN) and ManpowerGroup (NYSE: MAN) as U.S. temp penetration in May reached an all-time high of 2.05%, reflecting the positive secular mix shift favoring temps and an improving labor market.

"Temp growth accelerated to 5.8% y/y in May from 5.5% y/y in April, solidly in the 5-7% multi-year growth channel we see forming in the industry," the analyst notes.

"We believe the positive momentum in temp staffing creates an attractive operating environment for ASGN, U.S. operations of MAN and RHI," Tong said. "We remain buyers of ASGN and MAN on the basis of accelerating earnings growth, an upward bias to estimates and favorable valuations."

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