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MAXIMUS (MMS) Stock Touches 52-Week High: What's Driving It?
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Shares of Maximus, Inc. (MMS - Free Report) scaled a 52-week high of $88.24 in the trading session on Mar 24, before closing a tad lower at $86.36.
The company’s shares have charted a solid trajectory in recent times, appreciating 55.1% over the past year, much ahead of 32.6% growth of the industry it belongs to.
Notably, MAXIMUS has witnessed a 6.8% rise in share price since it posted second-quarter fiscal 2021 results.
Let’s find out what’s supporting the uptick.
Raised 2021 Outlook
Outlook for fiscal 2021 improved, primarily due to recent awards, increased scope and contract extensions.
MAXIMUS expects EPS in the range of $3.55-$3.75 (previous outlook: $3.45-$3.70). The Zacks Consensus Estimate of $3.66 lies within the updated guidance.
It expects revenues in the range of $3.40-$3.52 billion (previous outlook: $3.20-$3.40 billion). The Zacks Consensus Estimate of $3.55 billion lies above the updated guidance.
Cash flows from operations are expected between $350 million and $400 million (previous guidance: $340 million and $390 million). Free cash flow is anticipated in the range of $310-$360 million (previous guidance: $300 million and $350 million).
Consecutive Revenue Beat
MAXIMUS came up with better-than-expected revenue performance in the past seven quarters. The company’s top line benefited from the census contract in the U.S. Federal Services segment, and coronavirus-related response work such as contact tracing, disease investigation, vaccination support, unemployment insurance program support, and other key initiatives.
Shareholder-Friendly Moves
MAXIMUS has a solid track record of dividend payments. During fiscal 2020 and 2019, MAXIMUS paid cash dividends of $70.2 million and $63.9 million, respectively. It paid $11.7 million dividends to its shareholders during each of the fiscal years 2018, 2017 and 2016. Such moves indicate MAXIMUS’s commitment to create value for shareholders and underline its confidence in its business. These shareholder-friendly initiatives not only instill investors’ confidence, but also positively impact earnings per share.
The long-term expected earnings per share (three to five years) growth rate for Interpublic, Omnicom and Gartner is 2.4%, 4.7% and 13.5%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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MAXIMUS (MMS) Stock Touches 52-Week High: What's Driving It?
Shares of Maximus, Inc. (MMS - Free Report) scaled a 52-week high of $88.24 in the trading session on Mar 24, before closing a tad lower at $86.36.
The company’s shares have charted a solid trajectory in recent times, appreciating 55.1% over the past year, much ahead of 32.6% growth of the industry it belongs to.
Notably, MAXIMUS has witnessed a 6.8% rise in share price since it posted second-quarter fiscal 2021 results.
Let’s find out what’s supporting the uptick.
Raised 2021 Outlook
Outlook for fiscal 2021 improved, primarily due to recent awards, increased scope and contract extensions.
MAXIMUS expects EPS in the range of $3.55-$3.75 (previous outlook: $3.45-$3.70). The Zacks Consensus Estimate of $3.66 lies within the updated guidance.
It expects revenues in the range of $3.40-$3.52 billion (previous outlook: $3.20-$3.40 billion). The Zacks Consensus Estimate of $3.55 billion lies above the updated guidance.
Cash flows from operations are expected between $350 million and $400 million (previous guidance: $340 million and $390 million). Free cash flow is anticipated in the range of $310-$360 million (previous guidance: $300 million and $350 million).
Consecutive Revenue Beat
MAXIMUS came up with better-than-expected revenue performance in the past seven quarters. The company’s top line benefited from the census contract in the U.S. Federal Services segment, and coronavirus-related response work such as contact tracing, disease investigation, vaccination support, unemployment insurance program support, and other key initiatives.
Shareholder-Friendly Moves
MAXIMUS has a solid track record of dividend payments. During fiscal 2020 and 2019, MAXIMUS paid cash dividends of $70.2 million and $63.9 million, respectively. It paid $11.7 million dividends to its shareholders during each of the fiscal years 2018, 2017 and 2016. Such moves indicate MAXIMUS’s commitment to create value for shareholders and underline its confidence in its business. These shareholder-friendly initiatives not only instill investors’ confidence, but also positively impact earnings per share.
Zacks Rank and Stocks to Consider
Maximus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Servicessector are Interpublic (IPG - Free Report) , Omnicom (OMC - Free Report) and Gartner (IT - Free Report) each carrying a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for Interpublic, Omnicom and Gartner is 2.4%, 4.7% and 13.5%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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