Yahoo Finance Is Maximus (MMS) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Maximus (MMS). MMS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.33, which compares to its industry's average of 21.25. Over the last 12 months, MMS's Forward P/E has been as high as 19.09 and as low as 13.66, with a median of 15.09.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MMS has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.36.
Finally, we should also recognize that MMS has a P/CF ratio of 13.96. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.77. Within the past 12 months, MMS's P/CF has been as high as 17.05 and as low as 13.13, with a median of 15.36.
These are just a handful of the figures considered in Maximus's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MMS is an impressive value stock right now.
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Maximus, Inc. (MMS) : Free Stock Analysis Report
