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Are Investors Undervaluing Maximus (MMS) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Maximus (MMS - Free Report) is a stock many investors are watching right now. MMS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for MMS is its P/B ratio of 2.83. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. MMS's current P/B looks attractive when compared to its industry's average P/B of 3.15. Over the past 12 months, MMS's P/B has been as high as 3.10 and as low as 2.22, with a median of 2.42.

Finally, our model also underscores that MMS has a P/CF ratio of 11.31. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MMS's P/CF compares to its industry's average P/CF of 16.31. Over the past year, MMS's P/CF has been as high as 13.19 and as low as 8.67, with a median of 9.99.

These are only a few of the key metrics included in Maximus's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MMS looks like an impressive value stock at the moment.


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