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Information technology services provider CACI International Inc. (CACI - Free Report) recently secured a $92 million multiple-award contract for a period of two years. Per the contract, the company will offer a wide range of support service for the Space and Naval Warfare (SPAWAR) Systems Center (SSC) Pacific. The deal will help the company strengthen its foothold in its Surveillance and Reconnaissance market.

SSC Pacific offers research, development, delivery and support for integrated command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR), cyber, and space systems and capabilities to the U.S. Navy across all war-fighting domains.

Over the years, CACI has worked closely with the Navy and SSC Pacific and helped the latter achieve its mission on the back of its expertise in surveillance and reconnaissance solutions.

CACI continues to win deals at regular intervals. These back-to-back contracts will boost the company’s growth trajectory. CACI intends to drive operational excellence by focusing on its organic and inorganic growth strategy, and strengthening existing customer relationships while building new ones.

A leader in IT outsourcing for the U.S. federal government, CACI earns its revenues through four customer groups: the Department of Defence (DoD), Federal Civilian Agencies, Commercial and Other, and State and Local Governments. The company’s DoD customers include the U.S. Army (the largest customer) and the Navy. Meanwhile, federal civilian agencies provide litigation support services to the Department of Justice.

Having the government as one of the biggest clients lends stability to the business and mitigates some of the fluctuations in revenue. Although the government generally has a lengthy approval process, the project continues to earn money years after approval. Moreover, government contracts improve the visibility on future revenue streams.

In addition, CACI has ample exposure to the rapidly growing DoD and Department of Homeland Security budgets. The company’s system integration skills and intelligence expertise allow it to consume a significant portion of the funds earmarked for the Department of Homeland Security, while creating systems that foster the sharing of critical information among all intelligence agencies. Given all these factors, we believe that CACI is rather comfortably positioned, especially with its favored relationship with the DoD.

CACI currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Accenture plc (ACN - Free Report) , LogMeIn, Inc. (LOGM - Free Report) , and Carbonite, Inc. (CARB - Free Report) . Accenture carries a Zacks Rank #2 (Buy), whereas LogMeIn and Carbonite both sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Accenture has a long-term earnings growth expectation of 10.1% and is currently trading at a forward P/E of 19.6x.

LogMeIn has a long-term earnings growth expectation of 22.5% and is currently trading at a forward P/E of 96.5x.

Carbonite has a long-term earnings growth expectation of 30.0% and is currently trading at a forward P/E of 85.2x.

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