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Here's Why Maximus Stock Is a Great Pick for Your Portfolio
MAXIMUSMAXIMUS(US:MMS) ZACKSยท2025-09-17 18:55

Core Viewpoint - Maximus (MMS) has shown strong performance year-to-date and is positioned to maintain this momentum, making it a compelling addition to investment portfolios [1] Group 1: Stock Performance - MMS shares have increased by 17.5% year-to-date, significantly outperforming the Government Services industry, which has seen a decline of 5% [2][8] - The company has a Zacks Rank of 1 (Strong Buy), indicating strong market confidence [3] Group 2: Earnings and Growth Prospects - Maximus has a positive earnings surprise history, exceeding the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 29.3% [3] - The Zacks Consensus Estimate for Maximus's 2025 revenues is $5.45 billion, reflecting a year-over-year growth of 2.74%, while the earnings estimate is $7.41, indicating a 21.28% increase [4][8] Group 3: Competitive Edge and Financial Health - The company achieved CMMC Level 2 certification in August 2025, enhancing its credibility in defense and national security sectors by meeting stringent cybersecurity standards [5] - MMS's current ratio at the end of Q3 fiscal 2025 was 2.27, well above the industry average of 1.35, suggesting strong liquidity and ability to meet short-term obligations [6] Group 4: Dividend History - Maximus has consistently paid dividends over the past four fiscal years, with payouts of $68.8 million, $68.7 million, $68 million, and $72.9 million, reflecting the company's commitment to shareholder value [9]