Maximus (MMS): Is There Still Value After Recent Share Price Gains?

Maximus (MMS) stock has been on the move lately, catching some attention after its steady month-long and past 3 months’ performance. The stock has just returned 2% this month and 27% in the past 3 months, standing out in its sector.

See our latest analysis for Maximus.

After a robust stretch this year, Maximus is now trading at $91.25 per share and has built solid momentum over the last several months. The company’s 1-year total shareholder return stands at 1.7%. However, it is the impressive 63% total return for long-term holders over three years that demonstrates the staying power this name has for patient investors.

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With Maximus now trading below analyst targets and following strong recent gains, the key question is whether today’s share price offers real value or if the market has already factored in its future potential for growth.

Most Popular Narrative: 13.1% Undervalued

Compared to the last closing price, the narrative points to a meaningfully higher fair value for Maximus shares, setting the stage for a closer look at what drives this optimism.

“Pending implementation of new federal legislation (e.g. Medicaid work requirements, increased eligibility reviews, and SNAP payment integrity) is set to significantly expand state demand for Maximus' compliance and administration services starting in FY27. This could position the company for an above-trend acceleration in organic revenue growth.”

Read the complete narrative.

Want the details behind that price target? Discover which growth drivers and margin forecasts analysts highlight, as well as the future profit multiple that stands out against sector averages. What key assumptions are fueling this narrative’s optimism? There is a surprising story behind how Maximus is expected to scale, and it’s all in the full narrative.

Result: Fair Value of $105 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, new federal budget constraints or a rapid shift toward digital self-service by agencies could limit Maximus’s growth potential and dampen future results.

Find out about the key risks to this Maximus narrative.

Build Your Own Maximus Narrative

If you have your own perspective or want to dig deeper into the numbers, you can shape your own view in just a few minutes. Do it your way.

A great starting point for your Maximus research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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