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Is CACI International (CACI) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 holds a P/E ratio of 17.78, while its industry has an average P/E of 19.80. CACI's Forward P/E has been as high as 20.63 and as low as 13.45, with a median of 17.41, all within the past year.

Investors will also notice that CACI has a PEG ratio of 1.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CACI's PEG compares to its industry's average PEG of 1.83. CACI's PEG has been as high as 2.06 and as low as 1.34, with a median of 1.74, all within the past year.

Another valuation metric that we should highlight is CACI's P/B ratio of 2.15. 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. CACI's current P/B looks attractive when compared to its industry's average P/B of 3.31. CACI's P/B has been as high as 2.33 and as low as 1.55, with a median of 2.01, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CACI has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.38.

Value investors will likely look at more than just these metrics, but the above data helps show that CACI International is likely undervalued currently. And when considering the strength of its earnings outlook, CACI sticks out at as one of the market's strongest value stocks.


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