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Is CACI International (CACI) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is CACI International (CACI - Free Report) . CACI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 14.05, which compares to its industry's average of 17.91. CACI's Forward P/E has been as high as 21.36 and as low as 12.36, with a median of 17.46, all within the past year.

CACI is also sporting a PEG ratio of 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CACI's PEG compares to its industry's average PEG of 2.35. CACI's PEG has been as high as 2.14 and as low as 1.08, with a median of 1.45, all within the past year.

Another valuation metric that we should highlight is CACI's P/B ratio of 1.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.17. Over the past year, CACI's P/B has been as high as 2.87 and as low as 1.68, with a median of 2.32.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CACI has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.15.

These are only a few of the key metrics included in CACI International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CACI looks like an impressive value stock at the moment.


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