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Here's Why You Should Hold MAXIMUS (MMS) in Your Portfolio
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MAXIMUS, Inc. (MMS - Free Report) 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 quality and sustainability of its growth. The company’s earnings and revenues for fiscal 2021 are expected to improve 28% and 17.9% respectively, year over year.
The MAXIMUS stock has gained 24.1% in the past year, outperforming the 17.6% rally of the industry it belongs to.
MAXIMUS’s business process management expertise and ability to deliver cost-effective, efficient and high-scale solutions make it a lucrative partner to governments. MAXIMUS maintains solid relationships and a strong reputation with governments, and long-term contracts provide it predictable recurring revenue streams.
The company remains focused on expanding its foothold in clinical services as well as long-term services and supports. Moreover, increased longevity and more complex health needs have increased the need for government social benefits and safety-net programs. This should continue driving demand for the company’s services.
Commitment to shareholder returns makes MAXIMUS a reliable way for investors to compound wealth over the long term. During fiscal 2020 and 2019, the company paid cash dividends of $70.2 million and $63.9 million, respectively. It paid $11.7 million in dividends to its shareholders during each of the fiscal years 2018, 2017 and 2016.
Some Risks
MAXIMUS' total debt at the end of second-quarter fiscal 2021 was $278 million, higher than $32 million at the end of the prior quarter. The company’s cash and cash equivalent of $102 million at the end of the quarter was below the debt level, underscoring that the company does not have enough cash to meet its debt burden. The company, however, can meet the short-term debt of $17 million.
The long-term expected earnings per share (three to five years) growth rate for Accenture, Gartner and CRA International is pegged at 10%, 13.5% and 15.5%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Here's Why You Should Hold MAXIMUS (MMS) in Your Portfolio
MAXIMUS, Inc. (MMS - Free Report) 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 quality and sustainability of its growth. The company’s earnings and revenues for fiscal 2021 are expected to improve 28% and 17.9% respectively, year over year.
The MAXIMUS stock has gained 24.1% in the past year, outperforming the 17.6% rally of the industry it belongs to.
Maximus, Inc. Price
Maximus, Inc. price | Maximus, Inc. Quote
What’s Supporting the Rally?
MAXIMUS’s business process management expertise and ability to deliver cost-effective, efficient and high-scale solutions make it a lucrative partner to governments. MAXIMUS maintains solid relationships and a strong reputation with governments, and long-term contracts provide it predictable recurring revenue streams.
The company remains focused on expanding its foothold in clinical services as well as long-term services and supports. Moreover, increased longevity and more complex health needs have increased the need for government social benefits and safety-net programs. This should continue driving demand for the company’s services.
Commitment to shareholder returns makes MAXIMUS a reliable way for investors to compound wealth over the long term. During fiscal 2020 and 2019, the company paid cash dividends of $70.2 million and $63.9 million, respectively. It paid $11.7 million in dividends to its shareholders during each of the fiscal years 2018, 2017 and 2016.
Some Risks
MAXIMUS' total debt at the end of second-quarter fiscal 2021 was $278 million, higher than $32 million at the end of the prior quarter. The company’s cash and cash equivalent of $102 million at the end of the quarter was below the debt level, underscoring that the company does not have enough cash to meet its debt burden. The company, however, can meet the short-term debt of $17 million.
Zacks Rank and Stocks to Consider
MAXIMUS currently carries a Zacks Rank #3 (Hold).
Some top-ranked Business Services stocks are Accenture (ACN - Free Report) ,Gartner (IT - Free Report) and CRA International (CRAI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for Accenture, Gartner and CRA International is pegged at 10%, 13.5% and 15.5%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>