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Here's Why Maximus Stock is a Compelling Pick for You Right Now

Zacks Investment Research - Wed Jan 14, 10:06AM CST
Here's Why Maximus Stock is a Compelling Pick for You Right Now

Maximus, Inc. MMS, a leading provider of government health and human services programs globally, has delivered an impressive performance over the past month and shows potential to sustain its momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, you should add the stock to your portfolio.

What Makes MMS an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an excellent run over the past month. Shares of Maximus have gained 11.3% compared with the 8.6% rally of the industry it belongs to.

Solid Rank & VGM Score: MMS currently sports a Zacks Rank #1 (Strong Buy) and has 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 or 2 (Buy), offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition now. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Over the past 60 days, two estimates for fiscal 2026 have moved northward, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2026 earnings has increased 15.8% during this period.

Positive Earnings Surprise History: MMS has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the last four quarters and missed once, delivering an earnings surprise of 29.3% on average.

Strong Growth Prospects: The Zacks Consensus Estimate for Maximus’s first-quarter fiscal 2026 earnings is pegged at $1.84 per share, indicating 14.3% year-over-year growth. For fiscal 2026, the consensus estimate is pegged at $8.19 per share, implying 11.3% year-over-year growth.

Growth Factors: MMS’ revenue growth is primarily driven by its government health and human services programs globally. The company’s business process management expertise and ability to deliver cost-effective, efficient and high-scale solutions position it as a lucrative partner to governments. The rising need for social benefits and safety-net programs for increased longevity and more complex health issues is driving demand for MMS’ services across government and private sectors.

Maximus, Inc. Revenue (TTM)

Maximus, Inc. Revenue (TTM)

Maximus, Inc. revenue-ttm | Maximus, Inc. Quote

The company relies on its expert workforce in the critical aspects of the design, implementation, and operation of government health and human services programs. The capabilities of its workforce have enabled MMS to deliver performance-based, tech-modernized contracts and gain customers’ trust.

MMS’ innovative and AI investments further differentiate it as a leader in the civilian sector, enhancing customer experience. Its total experience management solution, a FedRAMP (Federal Risk and Authorization Management Program)-secured, modular, flexible, scalable and configurable platform, enables federal agencies to deliver smarter citizen-centric services. AI-driven cloud-based services are also becoming the preferred procurement method for government agencies. The acquisition of Veterans Valuation Services, a provider of Medical Disability Examinations to the U.S. Department, in 2021 has maximized opportunities for new customers.

MMS had a current ratio (a measure of liquidity) of 1.64 at the end of the fiscal fourth quarter of 2025, higher than the industry’s 1.61. A current ratio of more than 1 indicates that the company is well equipped to meet its short-term obligations.

Other Stocks to Consider

A couple of other top-ranked stocks in the broader Business Services sector are Information Services Group III and Charles River Associates CRAI.

Information Services holds a Zacks Rank #2, at present. III has a long-term earnings growth expectation of 18.5%. The company delivered a trailing four-quarter earnings surprise of 15.9% on average.

Charles River also has a Zacks Rank of 2, at present, with a long-term earnings growth expectation of 16%. CRAI delivered a trailing four-quarter earnings surprise of 15% on average.

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Charles River Associates (CRAI): Free Stock Analysis Report
 
Information Services Group, Inc. (III): Free Stock Analysis Report
 
Maximus, Inc. (MMS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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