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Here's Why Maximus Stock is a Compelling Pick for You Right Now
ZACKS· 2026-01-14 16:01
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]