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Here's Why Maximus Stock Is a Great Pick for Your Portfolio

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Key Takeaways

  • MMS shares are up 17.5% YTD, outpacing the government services industry's 5% decline.
  • The company projects 2025 earnings of $7.41, a 21.28% year-over-year increase.
  • MMS boosts defense credibility with CMMC Level 2 certification and a strong dividend history.

Maximus (MMS - Free Report) , a leading global provider of government health and human-services programs, has performed well over the year-to-date period and has the potential to sustain momentum in the near term. If you have not yet taken advantage of the share price appreciation, you should consider adding the stock to your portfolio now.  

What Makes MMS an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend shows that the stock has had an impressive run over the year-to-date period. Shares of MMS have rallied 17.5% in the same time period, outperforming the 5% decline of the Government Services industry it belongs to. 

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Solid Rank: MMS sports a Zacks Rank #1 (Strong Buy).

Positive Earnings Surprise History: MMS has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an earnings surprise of 29.3%, on average. 

Strong Growth Prospects: The Zacks Consensus Estimate for Maximus’s 2025 revenues is pegged at $5.45 billion, reflecting 2.74% year-over-year growth. The consensus estimate for 2025 earnings is pegged at $7.41, hinting at a 21.28% year-over-year increase.

Growth Factors: Maximus is enhancing its competitive edge with the achievement of CMMC Level 2 certification in August 2025. This demonstrates its ability to meet strict Department of Defense cybersecurity standards, safeguard sensitive defense data and accelerate program launches by bypassing lengthy Authorization to Operate delays. This milestone reinforces Maximus’ position as a trusted partner for defense and national security missions.

MMS's current ratio (a measure of liquidity) at the end of the third quarter of fiscal 2025 was 2.27, higher than the industry’s 1.35. A current ratio of more than 1 indicates that the company should not have problems meeting its short-term obligations.

Moreover, 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 highlight its confidence in the business.

Other Stocks to Consider

Some other top-ranked stocks to consider from the broader Zacks Business Services sector are Green Dot ((GDOT - Free Report) and AppLovin ((APP - Free Report)  

Green Dot sports a Zacks Rank of #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here

GDOT has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missing once. The average beat is 42.1%.

AppLovin also sports a Zacks Rank of 1.

APP has an encouraging earnings surprise history, topping the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 22.36%.


See More Zacks Research for These Tickers


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Green Dot Corporation (GDOT) - free report >>

Maximus, Inc. (MMS) - free report >>

AppLovin Corporation (APP) - free report >>

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