Maximus’ (MMS) Tech Capabilities and Beaten-Down Valuation Point to M&A Upside
In its second-quarter 2026 investor letter, Third Avenue Small-Cap Value Fund highlighted Maximus, Inc. (NYSE: MMS ). Maximus, Inc. (NYSE:MMS) is a leading government services company, and the fund initiated a position in the stock during the quarter. On September 21, 2026, Maximus, Inc. (NYSE:MMS) closed at $55.97 per share. Over the past month, Maximus, Inc. (NYSE:MMS) declined 4.37%, but its shares are down 36.07% over the past year. Maximus, Inc. (NYSE:MMS) has a market capitalization of $2.93 billion, and its stock has traded within a 52-week range of $52.73 to $100.00.
Third Avenue Small-Cap Value Fund stated the following regarding Maximus, Inc. (NYSE:MMS) in its Q2 2026 investor letter:
"Maximus, Inc. (NYSE:MMS), headquartered in McLean Virgina, has over its fifty-year history grown to be one of the twenty largest government contractors, either public or private. This technology-forward consultant designs, owns and maintains the software stack for government entities, notably the IRS, the SEC's EDGAR filings database and real-time referencing of the TSA's "no fly" list, to name a few. Despite Maximus' federal business revenue growing more than 8% in 2025, pessimism related the D.O.G.E. narratives have been unforgiving for Maximus' share price, as well as the broader government consulting industry. Further clouding the perception around Maximus in 2026 has been the lapses in government funding and generalized fear of artificial intelligence disintermediation.
Maximus, Inc. (NYSE:MMS) is not on our list of the 40 Most Popular Stocks Among Hedge Funds . According to our database, 32 hedge fund portfolios held Maximus, Inc. (NYSE:MMS) at the end of the second quarter, compared to 24 in the previous quarter. While we acknowledge the potential of Maximus, Inc. (NYSE:MMS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years .
