Back to top

Image: Bigstock

Here's Why ICF International Stock is a Great Pick Right Now

Read MoreHide Full Article

ICF International, Inc. (ICFI - Free Report) has performed well over the past three months and can sustain momentum in the near term. Consequently, if you have not taken advantage of the share price appreciation yet, you should add the stock to your portfolio.

What Makes ICFI an Attractive Pick?

An Outperformer: A glimpse at this management, technology, and policy consulting and implementation service provider’s price trend reveals that the stock has had an impressive run over the past three months. ICFI shares have gained 22.6% compared with the 8.3% rally of the industry it belongs to and the 2.9% rise of the Zacks S&P 500 composite.

Solid Rank: ICF Internationalcarries a Zacks Rank #2 (Buy) at present and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition now.

Northward Estimate Revisions: Two earnings estimates for 2024 have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has increased 1.7% in the past 60 days.

Positive Earnings Surprise History: ICFI has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 11.7% on average.

Strong Growth Prospects: The Zacks Consensus Estimate for ICF International’s 2024 revenues is pegged at $2.1 billion, indicating 5% year-over-year growth. The consensus estimate for earnings is pegged at $7.1 per share, suggesting an 8.6% year-over-year rise.

Growth Factors: ICFI continues to witness strong demand for its energy-efficient program, driven by the company’s proven cost-effectiveness in increasing utility capacity. New client wins, and the rising size and scope of its programs due to the expansion of energy efficiency, electrification and consumer marketing programs of ICFI’s utility clients fueled growth as well.

ICF International acquired CMY, and its grid engineering and analytics capabilities are natural extensions of ICFI’s electrification work, utility planning and renewables. The acquired company enables ICFI to provide a wide array of services to utility and developer clients.

Strong growth is observed in the company’s energy advisory work, mainly in power and technical advisory. It shows rising demand from developers of renewable energy resources. ICF International’s environment and planning business line is gaining from the rising demand for resilience solutions. Investments in undergrounding power lines to reduce wildfire risks while renewable energy developers seek ICFI’s expertise in licensing, permitting and compliance provide a favorable environment for business expansion.

Other Stocks to Consider

Some other top-ranked stocks from the broader Zacks Business Services sector are Docusign (DOCU - Free Report) and Qifu Technology, Inc. (QFIN - Free Report) , each currently sporting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Docusign has a long-term earnings growth expectation of 9.3%. DOCU delivered a trailing four-quarter earnings surprise of 18.3%, on average.

Qifu Technology has a long-term earnings growth expectation of 14.5%. QFIN delivered a trailing four-quarter earnings surprise of 8.6%, on average.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in