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Here's Why You Should Add Maximus Stock to Your Portfolio Now

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Maximus, Inc. (MMS - Free Report) shares have returned 8% in the past month, and we believe that the stock has the potential to sustain its momentum in the near term.

MMS carries a Zacks Rank #2 (Buy) and a VGM Score of A at present. 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.

The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $5.95, up 2% in the past 60 days. Two estimates for fiscal 2025 earnings have been revised upward, with no downward revisions in this time frame

With more than 40 years of experience, Maximus has grown to be a leading operator of government health and human services programs globally. The company’s business process management expertise and its ability to deliver cost-effective, efficient and high-scale solutions position it as a lucrative partner to governments.

Maximus maintains solid relationships and a strong reputation with governments. Its long-term contracts provide the company with predictable recurring revenue streams. It continuously seeks long-term relationships with clients in not only those markets where they operate but also in adjacent ones.

Maximus has been active on the acquisition front,and this strategy has enabled itto expand its business processes, knowledge and client relationships, enhance technical capabilities and gain additional skill sets. Strategic acquisitions also complement the company’s long-term organic growth strategy. The 2022 acquisition of Stirling Institute of Australia, which provides vocational training to Australians seeking to improve their knowledge and qualifications, has strengthened its employment services. Another acquisition, BZ Bodies, has strengthened Maximus’ services within the U.K.

The company has a solid track record of dividend payments. During fiscal 2021, 2022, 2023 and 2024, Maximus paid cash dividends of $68.8 million, $68.7 million, $68 million and $72.9 million, respectively. These steady payouts indicate Maximus’ commitment to create value for shareholders and underline its confidence in its business.

Maximus' current ratio (a measure of liquidity) at the end of fourth-quarter fiscal 2024 was pegged at 1.49, higher than the industry’s 1.45. A current ratio of more than 1 indicates that the company should not have problems meeting its short-term obligations.

Other Stocks to Consider

Some better-ranked stocks in the broader Zacks Business Services sector are UiPath (PATH - Free Report) and RB Global, Inc. (RBA - Free Report) .

UiPath sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PATH has a long-term earnings growth expectation of 19.3%. It delivered a trailing four-quarter earnings surprise of 38.8%, on average.

RB Global sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 10.6%. RBA delivered a trailing four-quarter earnings surprise of 16.3%, on average.


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