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Here's Why You Should Hold MAXIMUS (MMS) in Your Portfolio
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MAXIMUS, Inc. (MMS - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth. The company’s earnings for fiscal 2021 are expected to improve 7.9% year over year and earnings for fiscal 2022 are expected to grow at a rate of 20.3%.
The stock has gained 47.1% in the past year, compared with the industry's rally of 32.8%.
Key Growth Drivers
MAXIMUS has a diversified portfolio with rising operating profit margin, high cash conversion and access to a $400 million credit facility. The company’s financial flexibility enables it to pursue business investment and strategic acquisition opportunities as well as reward shareholders through dividends.
The company’s cash and cash equivalent balance of $132.6 million at the end of first-quarter fiscal 2021 was well above the debt level $18.5 million, underscoring the fact that the company has enough cash to meet its debt burden. A strong cash position allows the company to pursue strategic acquisitions, invest in growth initiatives and return cash through regular quarterly dividend payment and share repurchases.
Risks Associated
MAXIMUS’ global presence makes it vulnerable to the risks associated with foreign currency exchange rate fluctuations. Outside the United States, the company transacts in currencies like the Australian Dollar, the British Pound, the Canadian Dollar, the Saudi Arabian Riyal and the Singapore Dollar and the British Pound.
The long-term expected earnings per share (three to five years) growth rate for The Interpublic Group of Companies, Gartner and TeleTech is pegged at 2.4%, 13.5% and 14.7%, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Here's Why You Should Hold MAXIMUS (MMS) in Your Portfolio
MAXIMUS, Inc. (MMS - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of quality and sustainability of its growth. The company’s earnings for fiscal 2021 are expected to improve 7.9% year over year and earnings for fiscal 2022 are expected to grow at a rate of 20.3%.
The stock has gained 47.1% in the past year, compared with the industry's rally of 32.8%.
Key Growth Drivers
MAXIMUS has a diversified portfolio with rising operating profit margin, high cash conversion and access to a $400 million credit facility. The company’s financial flexibility enables it to pursue business investment and strategic acquisition opportunities as well as reward shareholders through dividends.
The company’s cash and cash equivalent balance of $132.6 million at the end of first-quarter fiscal 2021 was well above the debt level $18.5 million, underscoring the fact that the company has enough cash to meet its debt burden. A strong cash position allows the company to pursue strategic acquisitions, invest in growth initiatives and return cash through regular quarterly dividend payment and share repurchases.
Risks Associated
MAXIMUS’ global presence makes it vulnerable to the risks associated with foreign currency exchange rate fluctuations. Outside the United States, the company transacts in currencies like the Australian Dollar, the British Pound, the Canadian Dollar, the Saudi Arabian Riyal and the Singapore Dollar and the British Pound.
Zacks Rank and Stocks to Consider
MAXIMUS currently carries a Zacks Rank #3 (Hold).
Some better-ranked service stocks are The Interpublic Group of Companies, Inc. (IPG - Free Report) , Gartner, Inc. (IT - Free Report) and TeleTech Holdings (TTEC - Free Report) . The Interpublic Group of Companies and Gartner carry a Zacks Rank #2 (Buy), while TeleTech sports a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term expected earnings per share (three to five years) growth rate for The Interpublic Group of Companies, Gartner and TeleTech is pegged at 2.4%, 13.5% and 14.7%, respectively.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>