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Is ICF International (ICFI) Stock Undervalued Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is ICF International (ICFI). ICFI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 17.13. This compares to its industry's average Forward P/E of 18.25. Over the last 12 months, ICFI's Forward P/E has been as high as 19.99 and as low as 15.81, with a median of 17.35.

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Another notable valuation metric for ICFI is its P/B ratio of 2.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.13. Within the past 52 weeks, ICFI's P/B has been as high as 2.70 and as low as 2.06, with a median of 2.36.

Finally, our model also underscores that ICFI has a P/CF ratio of 18.52. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.23. ICFI's P/CF has been as high as 20.56 and as low as 15.88, with a median of 17.92, all within the past year.

Maximus (MMS) may be another strong Government Services stock to add to your shortlist. MMS is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Maximus holds a P/B ratio of 3.01 and its industry's price-to-book ratio is 7.13. MMS's P/B has been as high as 3.24, as low as 2.21, with a median of 2.62 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that ICF International and Maximus are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ICFI and MMS feels like a great value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ICF International, Inc. (ICFI) : Free Stock Analysis Report

Maximus, Inc. (MMS) : Free Stock Analysis Report

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Zacks Investment Research