ICF International, Inc. (ICFI Quick QuoteICFI - Free Report) is a government services provider that has performed exceptionally well over the past six months 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, it’s time you add the stock to your portfolio.

What Makes ICFI 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 six months. Shares of ICF International have returned 21.7% compared with the 21.2% rally of the industry it belongs to and the 6% rise of the Zacks S&P 500 composite.

Solid Rank: ICFI currently carries a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, 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. One estimate for 2023 moved north over the past 60 days versus no southward revision. Over the same period, the Zacks Consensus Estimate for 2023 earnings has climbed 0.6%.

Positive Earnings Surprise History: ICF International has an impressive earnings surprise history. The company outpaced the consensus mark in all the trailing four quarters, delivering an average beat of 7%.

Strong Growth Prospects: The Zacks Consensus Estimate for 2023 earnings is currently pegged at $6.31 per share, indicating year-over-year growth of 9.4%. ICFI’s 2024 earnings are expected to improve 11.7% year over year.

Growth Factors: The company sees steady demand trends among federal and state/local government clients and remains focused on deepening its presence in core U.S. federal and state, and local government markets, expanding commercial business and strengthening technology-based offerings.

With a substantial increase in funds received by the Department of Health and Human Services, ICF International’s largest client, there are considerable project win opportunities. Also, the company is well-positioned to assist the Centers for Disease Control and Administration for Strategic Preparedness and Response in post-pandemic response.

Strategic acquisitions have helped to reduce the company’s dependency on government spending. In addition, the acquisitions have expanded its offerings and provided scale in certain geographies. Past and future acquisitions are also expected to contribute to the growth of ICFI’s EBITDA and free cash flow.

Other Stocks to Consider

Investors interested in the broader Zacks Business Services sector can also consider the following top-ranked stocks:

Verisk Analytics (VRSK Quick QuoteVRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.72 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2.

Automatic Data (ADP Quick QuoteADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.

Broadridge (BR Quick QuoteBR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimates for fiscal 2024 revenues and earnings suggest growth of 7.2% and 8.8%, respectively.