Yahoo Finance Why Should You Start Adding Maximus (MMS) to Your Portfolio?
Maximus, Inc. MMS profits from acquisitions, which help it to expand its business processes, knowledge and client relationships. Strategic acquisitions enable the company to further its technical capabilities and skill sets, and boost its long-term organic growth strategy.
Let’s delve into the factors that make MMS an investment-worthy stock.
Price Performance
MMS has outperformed the Zacks Government Services industry in the past six months. The stock has rallied 27.2% compared with the industry's 2.5% growth in the same time frame.
Maximus, Inc. Price
Maximus, Inc. price | Maximus, Inc. Quote
Earnings Expectations
Earnings growth and stock price gains often indicate a company’s prospects. For 2023, the Zacks Consensus Estimate of earnings is pegged at $4.15. This has been revised upward 7.2% in the past 60 days.The favorable estimate revision reflects the confidence of brokers in the stock.
Earnings History
The company has an impressive earning surprise history, beating the Zacks Consensus Estimate in three of the four trailing quarters and missing on one occasion. Maximus has an average surprise of 11.3%.
Bullish Industry Rank
The industry to which Maximus belongs currently has a Zacks Industry Rank of 2 (of 249 groups). Such a solid rank places the industry in the top 2% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
A mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Other Positives
Maximus has been focusing on completing strategic acquisitions, thereby boosting its organic growth. The company plans on reducing debt in its balance sheet by appropriately using the free cash flow. It has been focusing on deploying advanced technology to enhance modernization. MMS also benefited from continued demand in the clinical services business.
Backlogs, healthy pipelines and strength in core business delivery are acting as a tailwind for the company’s growth. The company is expected to leverage the increased visibility in Medicaid redetermination.
The company has a constant dividend payment history. Such moves indicate Maximus’s commitment to creating value for shareholders and underline its confidence in its business.
Increasing current ratio indicates the company’s strength in paying off short-term obligations with ease. MMS has an increasing current ratio, which puts it in a great spot with respect to meeting short-term obligations.
Maximus currently has Zacks Rank #2 (Buy)
Other Stocks to Consider
Investors interested in the broader Zacks Business Service sector may consider the following stocks:
ICF International, Inc. ICFI is being aided by the strong government business, courtesy of improvement in the business development pipeline and win rate. In the fourth quarter of 2022, ICFI reported better-than-expected results. Quarterly earnings (excluding $1.09 from non-recurring items) were $1.56, beating the Zacks Consensus Estimate by 4.7% and increasing 31.1% from the year-ago reported figure. For first-quarter 2023, ICFI’s earnings are expected to register 6.1% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 6.4% on a year-over-year basis.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.39, which has been revised upward by 4.5% in the past 60 days. The consensus estimate for the full year is $6.14 per share. This has been revised upward 4.6% in the past 60 days. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Omnicom Group Inc.’s OMC internal development initiatives and shareholder-friendly policies ensure long-term profitability. In the fourth quarter of 2022, OMC reported better-than-expected results. Earnings of $2.09 per share beat the Zacks Consensus Estimate by 7.7% and increased 7.2% year over year, driven by a strong margin performance. For first-quarter 2023, OMC’s earnings are expected to match the year-ago reported figure of $1.39. The company’s earnings are expected to grow 3.2% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.39, which has been revised downward by 2.1% in the past 60 days. The consensus estimate for the full year is $7.15 per share. This has been revised upward 13.7% in the past 60 days. The company currently sports a Zacks Rank of 1.
Gartner, Inc. IT, with a Zacks Rank #2, reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. For first-quarter 2023, IT’s earnings are expected to be down 12.5% from the year-ago figure. The company’s earnings are expected to drop 15.8% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $2.04, which has been revised upward by 3.6% in the past 60 days. The consensus estimate for the full year is $9.49 per share. This has been revised slightly downward in the past 60 days.
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Omnicom Group Inc. (OMC) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
ICF International, Inc. (ICFI) : Free Stock Analysis Report
Maximus, Inc. (MMS) : Free Stock Analysis Report
