ICF International (ICFI) Rises 26% in a Year: Here’s How

ICF International, Inc. ICFI has had an impressive run over the past year.

The stock has gained 26.1%, outperforming the 21.8% rally of the industry it belongs to and the 8.2% rise of the Zacks S&P 500 composite.

ICF International, Inc. Price

ICF International, Inc. price | ICF International, Inc. Quote

Reasons for the Upside

ICF has put on an impressive earnings performance in the past four quarters. The company’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 7%.

The company sees steady demand trends among federal and state/local government clients and remains focused on deepening its presence in core U.S. federal and state and local government markets, expanding commercial business and strengthening technology-based offerings.

With a substantial increase in funds received by the Department of Health and Human Services, ICF’s largest client by far, there are considerable project win opportunities. Also, the company is well-positioned to assist the Centers for Disease Control and Administration for Strategic Preparedness and Response in post-pandemic response.

Strategic acquisitions have helped to reduce the company’s dependency on government spending. In addition, the acquisitions have expanded its offerings and provided scale in certain geographies. Past and future acquisitions are also expected to contribute to the growth of ICF’s EBITDA and free cash flow.

Zacks Rank and Stocks to Consider

ICF currently carries a Zacks Rank #3 (Hold).

Investors interested in the Zacks Business Services sector can consider the following better-ranked stocks:

Aptiv APTV carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings for 2023 are expected to grow 39% while revenues are anticipated to gain 14.8% from the year-ago figure. APTV had an impressive earnings surprise of 13.35% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. APTV carries a VGM Score of A.

Clean Harbors CLH has a Zacks Rank of 2. Earnings for 2023 are expected to be in line with the year-ago quarter while revenues are anticipated to go up 5.3% year over year. CLH had an impressive earnings surprise of 13% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. CLH carries a VGM Score of B.

Verisk Analytics VRSK carries a Zacks Rank of 2. Earnings for 2023 are expected to grow 14% while revenues are anticipated to fall 8.3% from the year-ago figure. VRSK had an impressive earnings surprise of 9.85% in the past four quarters, having beaten the Zacks Consensus Estimate in three of the four trailing quarters and matching on one instance.

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