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Here's Why You Should Buy CACI International (CACI) Stock

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CACI International Inc. (CACI - Free Report) has performed well in the past year. While the industry gained 27.5%, CACI outperformed with a return of 28.6% during the same time frame.

With expected long-term earnings per share growth rate of 10% and a market cap of $3.95 billion, it looks like a stock that investors need to add to their portfolio if they are looking to reap gains going ahead.



Let’s take a look at some of the factors aiding the company’s performance.

CACI International is gaining from its alliance with the Department of Defense (DoD) and exposure to expanding DoD and Department of Homeland Security budgets are key growth catalysts for CACI International. Moreover, cyber-attacks are creating increased awareness, leading to more demand for cyber solutions, which is in-turn beneficial for the company.

The company has been doing well and won a number of awards, which reflects its disciplined business development actions, consistent operational excellence and high customer satisfaction.

CACI International remains focused on the federal government marketplace and looks to capture more market share. The company intends to drive operational excellence by focusing on its organic and inorganic growth strategy and strengthening its existing customer relationships while building newer ones.

All these initiatives helped the company in posting solid third-quarter fiscal 2018 results with healthy year-over-year increase in both earnings and revenues. The company benefited from organic revenue growth and expanding margins.

Excluding the tax impact, earnings for the third quarter were $2.33 per share compared with $1.61 in the year-ago quarter. Quarterly revenues were $1,241.1 million compared with $1,086.4 million in the year-ago quarter.

Management is pretty optimistic about the current revenue composition of the company, which consists of around 99% of existing business and 1% of recompeting and new business.

Additionally, the company’s increased investments in advancing machine learning and artificial intelligence for the improvement of overall efficiency is also a positive. With an aim to strike larger bids in the addressed markets, the company looks to continue the momentum and post impressive financials going ahead.

CACI International currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are Micron Technology, Inc. (MU - Free Report) , Twitter, Inc. and Lam Research Corporation (LRCX - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term EPS growth rate for Micron, Twitter and Lam Research is projected to be 10%, 23.1% and 17.7%, respectively.

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