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CACI vs. FORR: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Computer - Services stocks have likely encountered both CACI International (CACI - Free Report) and Forrester Research (FORR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Both CACI International and Forrester Research have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

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 14.08, while FORR has a forward P/E of 27.23. We also note that CACI has a PEG ratio of 1.07. 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 2.27.

Another notable valuation metric for CACI is its P/B ratio of 2.41. 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 4.44.

These are just a few of the metrics contributing to CACI's Value grade of A 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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