Is Maximus, Inc. (MMS) the Most Undervalued Industrial Stock to Buy According to Analysts?

Maximus, Inc. (MMS), a leading provider of government services, has been making waves in the industrial sector with its recent contract wins and strong financial performance. But is the stock undervalued, and should investors consider buying it? Let's delve into the data and analyst sentiment to find out.

Maximus' financial performance has been robust, with revenue increasing 11.7% and adjusted operating margin at 11.1% in the second quarter of 2024. The company's recent contract wins, including a $263 million contract from Pennsylvania's Department of Human Services and a $40 million task order from the IRS, further solidify its position in the government services sector. These wins have analysts bullish on the company's prospects.


Analysts have raised their price targets for Maximus, with the average one-year price target now at $112.20, up from $104.55 in May. The highest target is $115.50, indicating a significant upside potential. This optimism is reflected in the Factor Analysis chart, which shows Maximus ranking high in value, growth, and momentum.


Institutional investors also seem to have confidence in Maximus' long-term growth prospects. The company has 775 institutional owners, with FMR LLC, BlackRock Inc., and Vanguard Group Inc. being among the top shareholders. This strong support from institutional investors suggests that Maximus is well-positioned for future growth.


However, regulatory changes and government spending trends can impact Maximus' stock price fluctuations. As a government services provider, Maximus is subject to changes in government policies and budget allocations. Investors should monitor these factors to assess the potential impact on the company's performance.

In conclusion, Maximus, Inc. (MMS) appears to be an attractive investment option based on its strong financial performance, recent contract wins, and positive analyst sentiment. With an average price target of $112.20 and a high target of $115.50, the stock may be undervalued, making it an interesting choice for investors looking to buy into the industrial sector. However, investors should also consider the potential impact of regulatory changes and government spending trends on the company's performance.