CACI International

CACI International Inc (CACI - Analyst Report) has moved to a Zacks #1 Rank (Strong Buy) thanks to another fantastic quarterly report. Earnings are heading higher, creating plenty of growth as well as value.

Company Description

CACI International, Inc. offers professional and IT services for defense, intelligence, homeland security, and IT modernization and government transformation.

Great Results

On Aug 17 CACI reported its fiscal fourth-quarter results that showed great revenue and earnings growth. Revenue for the quarter was up almost 14% to $963 million. The majority of growth was organic, but there were some M&A-related gains as well.

Earnings per share came in at $1.28, 11 cents higher than the Zacks Consensus Estimate. CACI has not missed an earnings forecast since 2007, beating in all but one quarter since.

Improved 2012 Outlook

CACI raised its earnings guidance slightly and analysts did the same. The Zacks Consensus Estimate for fiscal 2012 is up 61 cents, to $5.14 in the past 3 months.

Forecasts for 2013 are averaging $5.49, up 80 cents. Those estimates are projecting annual growth rates of 15% and 7%, respectively.

Plenty of News

Since the earnings release CACI has announced a bigger share repurchase program, completed an acquisition, and won a couple new contracts.

On Aug 29 the company expanded its existing share repurchase authorization by 4 million shares for about $210 million. In September CACI received more than $70 million in contracts from the Navy and the National Air and Space Intelligence Center.

We also saw CACI complete its $61.5 million purchase of Paradigm Solutions. The deal expands CACI's offerings for federal civilian agencies, the Dept of Defense, and the Intelligence Community.

Shares on Sale

Thanks to the previously mentioned estimate revisions and the late-summer selling, shares of CACI are priced to move. The forward P/E is about 10 times, putting the PEG ratio at 0.7. Investors may also like that the stock is going for 0.4 times sales and just 1.2 times book value.

The Chart

Here is a good visual. See how sharply those earnings are climbing? And how much the stock has sold off? While there may be some ups and downs, this should end up being a great entry point in the long run.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

Read the full analyst report on CACI