Maximus (MMS) is a Top-Ranked Momentum Stock: Should You Buy?

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 [3] - The Momentum Score identifies trends in stock prices or earnings outlooks, helping investors time their positions based on recent price changes [4] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [5] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in portfolio creation [6] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [8] - Stocks with lower ranks (4 or 5) may still have good Style Scores but are likely to face downward price pressure due to negative earnings outlooks [9] Company Spotlight: Maximus - Maximus, headquartered in Reston, VA, operates globally in government health and human services, employing over 39,600 individuals [10] - Currently rated 3 (Hold) on the Zacks Rank, Maximus has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 0.6% over the past four weeks [10][11] - Recent upward revisions in earnings estimates for fiscal 2024 have increased the Zacks Consensus Estimate by $0.20 to $5.99 per share, with an average earnings surprise of 9.8% [11]