Back to top

Image: Bigstock

6 Reasons Why You Should Bet on ICF International (ICFI)

Read MoreHide Full Article

ICF International, Inc. (ICFI - Free Report) is a government services provider that has performed exceptionally well over the past year and has the potential to sustain the momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, you should add the stock to your portfolio right now.

What Makes ICF an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run in the past year. Shares of ICF have returned 13% in the past year compared with the 4.5% rally of the industry it belongs to and against the 12.4% decline of the Zacks S&P 500 composite.

Solid Rank: ICF currently sports a Zacks Rank #1 (Strong Buy) and has a Value Growth Momentum Score (VGM Score) of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Three estimates for 2023 moved north over the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2023 earnings has climbed 7.3%.

Positive Earnings Surprise History: ICF has an impressive earnings surprise history. The company outpaced the consensus mark in all the trailing four quarters, delivering an average beat of 9.2%.

Strong Growth Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $6.3 per share, indicating year-over-year growth of 9.2%. ICF’s 2024 earnings are expected to improve 11.2% year over year.

Growth Factors: The company’s strong global presence in diverse markets and its robust, long-term relationships with clients should continue to drive sales. ICF continues to focus on deepening its presence in core U.S. federal and state and local government markets, expanding commercial business, and strengthening technology-based offerings. The passing of the Inflation Reduction Act provides significant opportunities across ICF’s government and commercial client set.

Other Stocks to Consider

Some other top-ranked stocks in the Zacks Business Services are Omnicom Group (OMC - Free Report) and Gartner, Inc. (IT - Free Report) .

For first-quarter 2023, OMC’s earnings are expected to increase slightly from the year-ago reported figure to $1.4. The company’s earnings are expected to grow 3.5% on a year-over-year basis in 2023.

The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.40, which has been revised downward by 1.4% in the past 60 days. The consensus estimate for the year stands at $7.17 per share. This has been revised 13.5% upward in the past 60 days. OMC currently sports a Zacks Rank #1.

The Zacks Consensus Estimate for IT’s first-quarter 2023 earnings is pegged at $2.04, which has been revised 3% upward in the past 60 days. The consensus estimate for the year stands at $9.49 per share, which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank #2.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Omnicom Group Inc. (OMC) - free report >>

Gartner, Inc. (IT) - free report >>

ICF International, Inc. (ICFI) - free report >>

Published in