A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.
ICF International, Inc. ICFI is a government services stock, having performed extremely well so far this year and has potential to carry the momentum further in the near term. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Here’s why the stock is an attractive pick.
An Outperformer: A glimpse of the company’s price trend shows that the stock has had an impressive run on the bourse year to date. ICF has returned a massive 55.5% compared with the industry’s rally of 19.5%.
Solid Rank: ICF has a Zacks Rank #2 (Buy). Our research shows that stocks with a solid Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Three estimates for 2018 moved north over the past 60 days while there was no southbound revision. This in turn, reflects analysts’ confidence in the company. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 2.4% upward.
ICF International, Inc. Price and EPS Surprise
Solid Growth Prospects: The consensus estimate for 2018 earnings of $3.81 represents a year-over-year improvement of 26.2%. For 2019, the bottom line is expected to register an 11.6% rise. ICF has an expected long-term earnings growth rate of 10%.
Growth Drivers: ICF has a strong global presence and serves a diverse set of markets including energy, environment, infrastructure, health, education, safety and security, consumer, technology, e-commerce, transport and financial markets. The company has multi-year relationships with several government and commercial clients. These ensure long-term sustainable revenue growth.
Currently, the company is experiencing a significant increase in international government work and a stable revenue performance from federal, state and local government clients. It continues to witness contract wins and growth in business development pipeline, a substantial portion of which, is represented by disaster recovery.
ICF looks well-poised for additional contract wins in the federal government market because of the raised fiscal 2018 and 2019 civilian agency budgets, approved earlier this year. During the second half of 2018, ICF anticipates RFPs to be issued by civilian agency clients. In the commercial business category, demand remains strong across the markets that it serves.
Strategic acquisitions helped ICF enhance its subject matter knowledge, expand offerings and provide scale in particular geographies. Last month, the company acquired disaster planning and recovery services firm, DMS Disaster Consultants. This buyout should improve its disaster response, recovery and preparedness offerings and further help it extend into state and local government markets. ICF continues to explore acquisition opportunities to gain new clients, increase presence in the potential markets as well as strengthen its portfolio of services.
Zacks Rank & Other Stocks to Consider
Currently, ICF carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the broader Business Services sector are Heidrick & Struggles International HSII, BG Staffing (BGSF) and Genpact G. While Heidrick & Struggles International sports a Zacks Rank #1, BG Staffing and Genpact carry a Zacks Rank of 2.
The expected long-term EPS (three to five years) growth rate for Heidrick & Struggles International, BG Staffing and Genpact is 13.5%, 20% and 10%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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