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Reasons to Retain Maximus (MMS) Stock in Your Portfolio For Now

·3 min read

Maximus, Inc. MMS has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company’s revenues for fiscal 2022 are expected to improve 5.7% year over year.

Factors That Auger Well

With more than 40 years of experience, Maximus has grown to be a leading operator of government health and human services programs globally. The company’s business process management expertise and its ability to deliver cost-effective, efficient and high-scale solutions position it as a lucrative partner to governments.

Maximus maintains solid relationships and a strong reputation with governments. Its long-term contracts provide the company with predictable recurring revenue streams. The company continuously seeks long-term relationships with clients in not only those markets where they operate, but also in adjacent ones. MMS is also focused on expanding its foothold in clinical services, as well as in long-term services and supports. Moreover, complex health needs have increased the requirement for government social benefits and safety-net programs. This should continue driving demand for the company’s services.

Maximus, Inc. Revenue (TTM)

Maximus, Inc. Revenue (TTM)
Maximus, Inc. Revenue (TTM)

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

The 2021 buyout of Attain has strengthened two core pillars of Maximus’ long-term corporate strategy, including accelerating digital transformation and the ongoing expansion into the U.S. federal market.

Some Risks

Maximus' current ratio at the end of March quarter was pegged at 1.45, lower than the current ratio of 1.57 reported at the end of the prior-year quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term obligations.

Zacks Rank and Stocks to Consider

Maximus currently carries a Zacks Rank #3 (Hold).

Investors interested in the broader Zacks Business Services sector can consider stocks like Avis Budget Group, Inc. CAR, Genpact Limited G and CRA International, Inc. CRAI.

Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has a long-term earnings growth expectation of 19.4%.You can see the complete list of today’s Zacks #1 Rank stocks here.

Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.

Genpact carries a Zacks Rank of 2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.

Genpact delivered a trailing four-quarter earnings surprise of 13.3%, on average.

CRA International also carries a Zacks Rank #2 currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.


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