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CACI or FORR: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Computer - Services sector have probably already heard of CACI International (CACI - Free Report) and Forrester Research (FORR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, both CACI International and Forrester Research are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CACI currently has a forward P/E ratio of 15.72, while FORR has a forward P/E of 24.80. We also note that CACI has a PEG ratio of 1.60. 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. FORR currently has a PEG ratio of 2.07.

Another notable valuation metric for CACI is its P/B ratio of 2.11. 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. By comparison, FORR has a P/B of 4.23.

These are just a few of the metrics contributing to CACI's Value grade of B and FORR's Value grade of C.

Both CACI and FORR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CACI is the superior value option right now.


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