Maximus, Inc. (MMS Quick QuoteMMS - Free Report) stands out as a strong investment opportunity, backed by solid fundamentals and a favorable Zacks rating. The company’s consistent financial performance, strategic acquisitions and strong government partnerships position it well for continued growth. With a history of stable dividend payments and a healthy liquidity position, Maximus demonstrates resilience and reliability in the market.

Let’s take a closer look at what makes MMS an attractive investment option.

MMS carries a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition.

The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $6.23, representing a 2.5% increase over the past 60 days. One estimate for fiscal 2025 earnings has been revised upward, with no downward revisions in this time frame.

With more than 40 years of experience, Maximus has grown to be a leading operator of government health and human services programs globally. The company’s business process management expertise and its ability to deliver cost-effective, efficient and high-scale solutions position it as a lucrative partner to governments.

Maximus maintains solid relationships and a strong reputation with governments. Its long-term contracts provide the company with predictable recurring revenue streams. It continuously seeks long-term relationships with clients in not only those markets where they operate but also in adjacent ones.

Maximus has been active on the acquisition front,and this strategy has enabled itto expand its business processes, knowledge and client relationships, enhance technical capabilities and gain additional skill sets. Strategic acquisitions also complement the company’s long-term organic growth strategy. The 2022 acquisition of Stirling Institute of Australia, which provides vocational training to Australians seeking to improve their knowledge and qualifications, has strengthened its employment services. Another acquisition, BZ Bodies, has strengthened Maximus’ services within the U.K.

The company has a solid track record of dividend payments. During fiscal 2021, 2022, 2023 and 2024, Maximus paid cash dividends of $68.8 million, $68.7 million, $68 million and $72.9 million, respectively. These steady payouts indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.

Maximus' current ratio (a measure of liquidity) at the end of the second quarter of fiscal 2025 was pegged at 1.84, higher than the industry’s 1.52. A current ratio of more than 1 indicates that the company should not have problems meeting its short-term obligations.

Zacks Rank & Other Stocks to Consider

Some other top-ranked stocks from the broader Zacks Business Services sector are Limbach (LMB Quick QuoteLMB - Free Report) and Qifu Technology (QFIN Quick QuoteQFIN - Free Report) , each currently carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Limbach has a long-term earnings growth expectation of 12%. LMB delivered a trailing four-quarter earnings surprise of 91.2%, on average.

Qifu Technology has a long-term earnings growth expectation of 11.3%. QFIN delivered a trailing four-quarter earnings surprise of 14.3%, on average.