Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? Developed along ...

Core Insights - Maximus, Inc. (MMS) has shown strong performance recently, with a share price increase of 11.3% over the past month, outperforming the industry average of 8.6% [2][10] - The company is currently rated as a Zacks Rank 1 (Strong Buy) and has a VGM Score of A, indicating it is a compelling investment opportunity [3] - Analysts have revised fiscal 2026 earnings estimates upward, with a 15.8% increase in the Zacks Consensus Estimate, reflecting growing confidence in the company's performance [4][10] Financial Performance - The Zacks Consensus Estimate for MMS's first-quarter fiscal 2026 earnings is $1.84 per share, representing a year-over-year growth of 14.3% [5] - For fiscal 2026, the consensus estimate for earnings is $8.19 per share, indicating an 11.3% year-over-year growth [5] - MMS has a strong earnings surprise history, exceeding the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 29.3% [4] Growth Drivers - Revenue growth for MMS is primarily driven by its government health and human services programs, supported by its expertise in business process management [6][10] - The increasing demand for social benefits and safety-net programs due to longer life expectancy and complex health issues is boosting the need for MMS's services [6] - The company’s investments in innovative technologies and AI enhance its service offerings, making it a leader in the civilian sector [8] Operational Strength - MMS has a current ratio of 1.64, indicating strong liquidity and the ability to meet short-term obligations, compared to the industry average of 1.61 [9] - The company relies on a skilled workforce to design, implement, and operate government health programs, which has helped build customer trust [7]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities likely to outperform the market in the short term [2] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, considering projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends, using metrics like one-week price changes and monthly earnings estimate changes to identify optimal entry points [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive rating that highlights stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [8] Investment Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the earnings outlook [9][10] Company Spotlight: Maximus (MMS) - Maximus, headquartered in Reston, VA, operates globally in government health and human services, employing over 39,600 individuals across multiple countries [11] - MMS holds a 1 (Strong Buy) rating on the Zacks Rank and has a VGM Score of B, indicating strong investment potential [11] - The company is particularly appealing to growth investors, with a Growth Style Score of A and a projected year-over-year earnings growth of 11.3% for the current fiscal year, alongside an upward revision in earnings estimates [12]

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Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding investors in selecting stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Analyzes projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [4] Momentum Score - Utilizes price changes and earnings estimate trends to identify favorable buying opportunities for high-momentum stocks [5] VGM Score - Combines all three Style Scores to provide a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988 [7] - There can be over 800 top-rated stocks available, making it essential to use Style Scores for effective selection [8] Stock Highlight: Maximus (MMS) - Maximus, a government health and human services provider, holds a Zacks Rank of 2 (Buy) and a VGM Score of A [11] - The company has a Momentum Style Score of B, with shares increasing by 13.9% in the past four weeks and a consensus earnings estimate rising to $8.19 per share [12]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate shifts [5] - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum, serving as a useful tool alongside the Zacks Rank [6] Zacks Rank and Style Scores Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7] - With over 800 top-rated stocks available, the Style Scores help investors narrow down their choices to align with their investment goals [8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering stocks with a 3 rank if they possess high Style Scores [9][10] Company Spotlight: Maximus (MMS) - Maximus, headquartered in Reston, VA, operates globally in government health and human services, employing over 39,600 individuals across multiple countries [11] - Maximus holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it a strong candidate for growth investors [12] - The company is projected to achieve a year-over-year earnings growth of 12% for the current fiscal year, with recent earnings estimates revised upward [12]

Core Insights - Maximus, Inc. (MMS) reported disappointing fourth-quarter fiscal 2025 results, with both earnings and revenues falling short of the Zacks Consensus Estimate, yet the stock rose 5.6% post-earnings release on Nov. 20 [1][8] - Adjusted earnings per share were $1.62, missing estimates by 0.6% but showing an 11% year-over-year increase. Revenues reached $1.32 billion, missing the consensus by 1.5% but increasing 0.19% year over year [1][8] Segmental Performance - The U.S. Federal Services segment generated revenues of $747.9 million, up 10.8% year over year, exceeding the estimate of $737.9 million [2] - The Outside the U.S. segment reported revenues of $141.2 million, down 20.3% year over year, but surpassed the anticipated $110.7 million [2] - The U.S. Services segment's revenues were $429.3 million, a decline of 7.4% year over year, falling short of the estimate of $474.2 million [2] Sales and Pipeline - Year-to-date signed contract awards totaled $4.7 billion as of Sept. 30, 2025, with pending contracts amounting to $331 million [3] - The sales pipeline stood at $51.3 billion, including $3.37 billion in pending proposals, $1.37 billion in proposals in preparation, and $46.6 billion in tracking opportunities [3] - The book-to-bill ratio was 0.9 on a trailing 12-month basis [3] Operating Performance - Operating income was $122.86 million, reflecting a 9.9% year-over-year increase, but below the expected adjusted operating income of $148.4 million, which was down 10.1% year over year [4] - The adjusted operating income margin improved to 9.32%, an increase of 82 basis points year over year [4] Financial Position - Maximus ended the quarter with cash and cash equivalents of $222 million, up from $59.8 million in the previous quarter [5] - The company generated $429 million in cash from operations, with free cash flow reported at $366 million [5] Fiscal 2026 Guidance - For fiscal 2026, total revenues are expected to range between $5.225 billion and $5.425 billion, below the Zacks Consensus Estimate of $5.61 billion [6] - Adjusted earnings are anticipated to be between $7.95 and $8.25 per share, exceeding the current consensus estimate of $7.34 [6] - The company projects an adjusted EBITDA margin of approximately 13.6-13.7% [6] - Free cash flow is expected to be between $450 million and $500 million, with interest expenses around $69 million and an effective income tax rate of approximately 25% [7]

Core Viewpoint - Maximus (MMS) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For Maximus, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices [5]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Maximus to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Maximus - Maximus is projected to earn $7.34 per share for the fiscal year ending September 2026, reflecting no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Maximus has increased by 20.5%, highlighting a positive trend in earnings expectations [8].

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Financial Performance - Revenue for fiscal year 2025 increased to $5,431,276, representing a 2.4% growth compared to $5,306,197 in fiscal year 2024[183]. - Gross profit for fiscal year 2025 was $1,333,443, a 6.5% increase from $1,251,652 in fiscal year 2024, with a gross profit margin of 24.6%[183]. - Operating income rose to $528,289 in fiscal year 2025, up from $488,499 in fiscal year 2024, resulting in an operating margin of 9.7%[183]. - Net income for the year ended September 30, 2025, was $319,034 thousand, compared to $306,914 thousand in 2024[243]. - Adjusted EBITDA for fiscal year 2025 was $701,554 thousand, with an adjusted EBITDA margin of 12.9%, up from 11.6% in 2024[243]. Segment Performance - The U.S. Federal Services Segment reported revenue of $3,067,691 for fiscal year 2025, a 12.1% increase from $2,737,244 in fiscal year 2024[192]. - The U.S. Services Segment experienced a revenue decline to $1,763,691, down 7.7% from $1,911,813 in fiscal year 2024[197]. - The Outside the U.S. Segment's revenue decreased to $599,894, an 8.7% decline from $657,140 in fiscal year 2024, primarily due to business disposals[201]. - The company anticipates operating margins for the U.S. Federal Services Segment in fiscal year 2026 to range between 15.5% and 16%[195]. - The company expects operating margins for the Outside the U.S. Segment in fiscal year 2026 to range between 3% to 5%[203]. Cash Flow and Debt - The net cash provided by operating activities decreased by $85.9 million to $429.4 million in fiscal year 2025 compared to $515.3 million in fiscal year 2024[212]. - The company reported a free cash flow of $366.2 million for fiscal year 2025, down from $401.1 million in fiscal year 2024[217]. - The total debt under the Credit Agreement as of September 30, 2025, was $1.35 billion, with an additional $750 million available through a revolving credit facility[218]. - The Consolidated Net Total Leverage Ratio as of September 30, 2025, was 1.51, compared to 1.37 in the previous year[228]. - The Consolidated Net Interest Coverage Ratio improved to 9.25 for fiscal year 2025, up from 8.54 in fiscal year 2024[228]. Shareholder Returns - The company utilized $447.5 million in fiscal year 2025 to repurchase 5.8 million shares of common stock, funded by operating cash flows and a $250 million expansion of its credit facility[214]. Assets and Investments - Cash and cash equivalents stood at $222.4 million as of September 30, 2025, indicating a stable liquidity position[208]. - The company made significant investments in technology upgrades for federal medical disability examinations, largely completed in the middle of fiscal year 2025[216]. - As of September 30, 2025, the company reported $1.78 billion in goodwill and $538.3 million in net intangible assets[235]. - The company held net assets denominated in currencies other than the U.S. Dollar amounting to $266.8 million as of September 30, 2025[246]. Tax and Exchange Rate Impact - The effective tax rate for fiscal year 2025 was 28.3%, up from 24.5% in fiscal year 2024, impacted by the disposal of businesses in Australia and Korea[189]. - A hypothetical 10% favorable exchange rate movement would increase comprehensive income by $26,681 thousand[248]. - A 100 basis point increase in interest rates would decrease net income by $6,969 thousand, while a decrease would increase net income by the same amount[251]. Other Financial Metrics - The company experienced a rise in Days Sales Outstanding (DSO) to 62 days as of September 30, 2025, up from 61 days in the previous year[216]. - The company has no collateral posted with its counterparty related to derivatives as of September 30, 2025[252].