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ICF International (ICFI) Rises 16% in 3 Months: Here's How

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ICF International, Inc. (ICFI - Free Report) has had an impressive run over the past three months.

The stock has gained 15.5%, outperforming the 13.7% rally of the industry it belongs to and the 12.1% rise of the Zacks S&P 500 composite.

 

Reasons for the Upside

ICF has put on an impressive earnings performance in the past four quarters. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 4.9%.

The company sees steady demand trends among federal and state/local government clients and remains focussed on deepening its presence in core U.S. federal and state and local government markets, expanding commercial business and strengthening technology-based offerings.

With a substantial increase in funds received by the Department of Health and Human Services, ICF’s largest client by far, there are considerable project win opportunities. Also, the company is well-positioned to assist the Centers for Disease Control and Administration for Strategic Preparedness and Response in post-pandemic response.

ICF is already providing technical assistance and communication and management support for Infrastructure and Jobs Act programs and remains well-positioned for new contract wins.

Strategic acquisitions have helped to reduce the company’s dependency on government spending. In addition, the acquisitions have expanded its offerings and provided scale in certain geographies. Past and future acquisitions are also expected to contribute to the growth of ICF’s EBITDA and free cash flow.

Zacks Rank and Stocks to Consider

ICF currently sports a Zacks Rank #3 (Hold).

Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks.

Green Dot (GDOT - Free Report) : GDOT currently carries a Zacks Rank #2 (Buy) and has a VGM score of A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has an impressive earning surprise history, beating the consensus mark in all the trailing four quarters. The company has an average surprise of 37.3%.

Maximus (MMS - Free Report) : MMS carries a Zacks Rank of 2 and has a VGM score of B.

The company has an impressive earning surprise history, beating the consensus mark in three instances and missing once, the average surprise being 9.6%.


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