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Here's Why Maximus Stock is a Great Pick for Investors Now
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Key Takeaways
MMS launched an AI-enabled Accuracy Assistant to help detect SNAP data errors before benefits are issued.
MMS reported a 2.34 current ratio in fiscal 2025, above the 2.07 industry average.
Maximus raised its quarterly dividend 10% to 33 cents in January 2026, boosting Shareholder's confidence.
The launch of Accuracy Assistant by Maximus (MMS - Free Report) highlights its push to help states improve accuracy in the Supplemental Nutrition Assistance Program (SNAP). The AI-enabled tool uses predictive analytics and automation to detect data inconsistencies and flag potential issues before benefits are issued. This helps states reduce payment errors and prepare for upcoming federal rules that will require them to share SNAP costs if error rates exceed set thresholds.
Maximus maintains a strong liquidity position, with its current ratio (a measure of liquidity) standing at 2.34 at the end of fiscal 2025, higher than the industry average of 2.07. A ratio above one indicates that the company can comfortably cover its near-term liabilities. Maximus has demonstrated a consistent liquidity track record, with current ratios of 2.00 in 2021, 1.43 in 2022, 1.38 in 2023 and 1.54 in 2024, highlighting its stable financial footing.
The company's commitment to shareholders is commendable, although it has a brief history of dividend payments. Maximus paid $68.8 million, $68.7 million, $68.0 million and $72.9 million in cash dividends in fiscal 2021, 2022, 2023 and 2024, respectively, followed by $68.7 million in fiscal 2025. The company further reinforced shareholder returns by raising its quarterly dividend by 10% to 33 cents per share in January 2026 from 30 cents previously, reflecting confidence in its financial strength and long-term growth prospects.
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 25.5%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for Maximus’s fiscal 2027 revenues is pinned at $5.65 billion, reflecting 5.6% year-over-year growth. The consensus estimate for 2027 earnings is pegged at $8.88 per share, hinting at a 5.04% year-over-year increase.
Bullish Industry Rank: The industry to which MMS belongs currently has a Zacks Industry Rank of 91 (out of 243). Such a favorable rank places it in the top 38% of Zacks Industries. Studies show that 50% of a stock’s price movement is directly related to the performance of the industry group to which it belongs.
A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.
Other Stocks to Consider
Some other top-ranked stocks for investors’ consideration are Dave Inc. (DAVE - Free Report) and FTI Consulting (FCN - Free Report) .
Dave currently sports a Zacks Rank of 1. The company has an expected earnings growth rate of 10.5% and 24.5% for 2026 and 2027, respectively.
DAVE has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 54.2%.
FTI Consulting carries a Zacks Rank of 2. FCN has an expected earnings growth rate of 5.3% and 22% for 2026 and 2027, respectively.
The company has an encouraging earnings surprise history as it has topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 26.2%.
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Here's Why Maximus Stock is a Great Pick for Investors Now
Key Takeaways
The launch of Accuracy Assistant by Maximus (MMS - Free Report) highlights its push to help states improve accuracy in the Supplemental Nutrition Assistance Program (SNAP). The AI-enabled tool uses predictive analytics and automation to detect data inconsistencies and flag potential issues before benefits are issued. This helps states reduce payment errors and prepare for upcoming federal rules that will require them to share SNAP costs if error rates exceed set thresholds.
Maximus, Inc. Revenue (Quarterly)
Maximus, Inc. revenue-quarterly | Maximus, Inc. Quote
Maximus maintains a strong liquidity position, with its current ratio (a measure of liquidity) standing at 2.34 at the end of fiscal 2025, higher than the industry average of 2.07. A ratio above one indicates that the company can comfortably cover its near-term liabilities. Maximus has demonstrated a consistent liquidity track record, with current ratios of 2.00 in 2021, 1.43 in 2022, 1.38 in 2023 and 1.54 in 2024, highlighting its stable financial footing.
The company's commitment to shareholders is commendable, although it has a brief history of dividend payments. Maximus paid $68.8 million, $68.7 million, $68.0 million and $72.9 million in cash dividends in fiscal 2021, 2022, 2023 and 2024, respectively, followed by $68.7 million in fiscal 2025. The company further reinforced shareholder returns by raising its quarterly dividend by 10% to 33 cents per share in January 2026 from 30 cents previously, reflecting confidence in its financial strength and long-term growth prospects.
Other Factors That Make MMS an Attractive Pick
Solid Rank: MMS carries a Zacks Rank #2 (Buy).
Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 25.5%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for Maximus’s fiscal 2027 revenues is pinned at $5.65 billion, reflecting 5.6% year-over-year growth. The consensus estimate for 2027 earnings is pegged at $8.88 per share, hinting at a 5.04% year-over-year increase.
Bullish Industry Rank: The industry to which MMS belongs currently has a Zacks Industry Rank of 91 (out of 243). Such a favorable rank places it in the top 38% of Zacks Industries. Studies show that 50% of a stock’s price movement is directly related to the performance of the industry group to which it belongs.
A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.
Other Stocks to Consider
Some other top-ranked stocks for investors’ consideration are Dave Inc. (DAVE - Free Report) and FTI Consulting (FCN - Free Report) .
Dave currently sports a Zacks Rank of 1. The company has an expected earnings growth rate of 10.5% and 24.5% for 2026 and 2027, respectively.
DAVE has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 54.2%.
FTI Consulting carries a Zacks Rank of 2. FCN has an expected earnings growth rate of 5.3% and 22% for 2026 and 2027, respectively.
The company has an encouraging earnings surprise history as it has topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average earnings surprise of 26.2%.