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Are Investors Undervaluing CACI International (CACI) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

CACI International (CACI - Free Report) is a stock many investors are watching right now. CACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 18.37, while its industry has an average P/E of 18.93. CACI's Forward P/E has been as high as 23.74 and as low as 14.76, with a median of 18.67, all within the past year.

Investors should also note that CACI holds a PEG ratio of 1.33. 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. CACI's industry currently sports an average PEG of 1.80. Over the past 52 weeks, CACI's PEG has been as high as 2.34 and as low as 1.33, with a median of 1.80.

Another notable valuation metric for CACI is its P/B ratio of 2.79. The P/B ratio is used to compare a stock's market value with 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 3.07. CACI's P/B has been as high as 3.51 and as low as 2.16, with a median of 2.79, 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CACI has a P/S ratio of 1.29. This compares to its industry's average P/S of 1.36.

These are only a few of the key metrics included in CACI International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CACI looks like an impressive value stock at the moment.

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