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Should Value Investors Buy Maximus (MMS) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Maximus (MMS - Free Report) is a stock many investors are watching right now. MMS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

MMS is also sporting a PEG ratio of 1.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MMS's PEG compares to its industry's average PEG of 1.70. Over the past 52 weeks, MMS's PEG has been as high as 2.05 and as low as 1.56, with a median of 1.84.

We should also highlight that MMS has a P/B ratio of 3.91. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 8.40. Over the past 12 months, MMS's P/B has been as high as 4.28 and as low as 2.43, with a median of 3.81.

Finally, we should also recognize that MMS has a P/CF ratio of 15.19. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.34. Over the past 52 weeks, MMS's P/CF has been as high as 17.57 and as low as 9.51, with a median of 14.72.

These are just a handful of the figures considered in Maximus's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MMS is an impressive value stock right now.


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