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Should Value Investors Buy CACI International (CACI) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is CACI International (CACI - Free Report) . CACI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for CACI is its P/B ratio of 2.34. 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 4.22. Over the past year, CACI's P/B has been as high as 2.49 and as low as 1.89, with a median of 2.30.

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 1.05. This compares to its industry's average P/S of 2.17.

Finally, we should also recognize that CACI has a P/CF ratio of 11.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CACI's P/CF compares to its industry's average P/CF of 13.75. Over the past year, CACI's P/CF has been as high as 13.32 and as low as 10.16, with a median of 11.47.

These are just a handful of the figures considered in CACI International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CACI is an impressive value stock right now.


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