Shares of ICF International (
ICFI Quick Quote ICFI - Free Report) have been strong performers lately, with the stock up 5.4% over the past month. The stock hit a new 52-week high of $94.19 in the previous session. ICF International has gained 25.7% since the start of the year compared to the 2.7% move for the Zacks Business Services sector and the 5.4% return for the Zacks Government Services industry. What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 25, 2021, ICF reported EPS of $1.36 versus consensus estimate of $1.14.
For the current fiscal year, ICF is expected to post earnings of $4.49 per share on $1.55 billion in revenues. This represents a 7.67% change in EPS on a 2.58% change in revenues. For the next fiscal year, the company is expected to earn $4.96 per share on $1.64 billion in revenues. This represents a year-over-year change of 10.47% and 5.8%, respectively.
ICF may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
ICF has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 20.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 15.2X versus its peer group's average of 18X. Additionally, the stock has a PEG ratio of 2.08. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, ICF currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if ICF fits the bill. Thus, it seems as though ICF shares could still be poised for more gains ahead.
How Does ICF Stack Up to the Competition?
Shares of ICF have been moving higher, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including FTI Consulting (
FCN Quick Quote FCN - Free Report) , Concentrix ( CNXC Quick Quote CNXC - Free Report) , and IQVIA Holdings ( IQV Quick Quote IQV - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ICF, even beyond its own solid fundamental situation.