ICF International, Inc. (ICFI) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of ICF International (ICFI)? Shares have been on the move with the stock up 10.4% over the past month. The stock hit a new 52-week high of $156.49 in the previous session. ICF International has gained 16.2% since the start of the year compared to the 10.9% move for the Zacks Business Services sector and the 12.9% return for the Zacks Government Services industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 27, 2024, ICF reported EPS of $1.68 versus consensus estimate of $1.64 while it missed the consensus revenue estimate by 0.62%.

For the current fiscal year, ICF is expected to post earnings of $6.74 per share on $2.07 billion in revenues. This represents a 3.69% change in EPS on a 5.64% change in revenues. For the next fiscal year, the company is expected to earn $7.80 per share on $2.26 billion in revenues. This represents a year-over-year change of 15.69% and 9.14%, respectively.

Valuation Metrics

ICF may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

ICF has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 23.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.1X. On a trailing cash flow basis, the stock currently trades at 15.8X versus its peer group's average of 15.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, ICF currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if ICF fits the bill. Thus, it seems as though ICF shares could have potential in the weeks and months to come.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ICF International, Inc. (ICFI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.