Back to top

Image: Bigstock

CACI International (CACI) Stock Jumps 4.1%: Will It Continue to Soar?

Read MoreHide Full Article

CACI International (CACI - Free Report) shares soared 4.1% in the last trading session to close at $304.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.1% gain over the past four weeks.

CACI’s stock appreciated on continued optimism surrounding the demand for its products and solutions. It has been benefiting from new business wins and organic expansions. The company has a large pipeline of new projects and continues to win more deals at regular intervals.

Furthermore, having the government as a big client lends stability to the business and moderate fluctuations in revenue. CACI continues to generate higher cash flows mainly driven by growth in billing and collection processes as well as its Master Accounts Receivable Purchase Agreement.

The company completed three acquisitions recently, adding mission expertise and technology capabilities to its business. CACI continues to expect accelerating organic revenue growth and margin expansion throughout fiscal 2022.

This defense contractor is expected to post quarterly earnings of $4.63 per share in its upcoming report, which represents a year-over-year change of -12.3%. Revenues are expected to be $1.65 billion, up 6.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For CACI International, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CACI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

CACI International belongs to the Zacks Computer - Services industry. Another stock from the same industry, CGI Group (GIB - Free Report) , closed the last trading session 2.2% lower at $80.82. Over the past month, GIB has returned -4.3%.

CGI's consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $1.19. Compared to the company's year-ago EPS, this represents a change of +11.2%. CGI currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CACI International, Inc. (CACI) - free report >>

CGI Group, Inc. (GIB) - free report >>

Published in