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Are Investors Undervaluing CACI International (CACI) Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 13.08. This compares to its industry's average Forward P/E of 17.99. Over the past year, CACI's Forward P/E has been as high as 23.74 and as low as 13.08, with a median of 18.67.

Investors will also notice that CACI has a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CACI's industry currently sports an average PEG of 1.65. Over the last 12 months, CACI's PEG has been as high as 2.34 and as low as 0.93, with a median of 1.80.

Another notable valuation metric for CACI is its P/B ratio of 2.06. 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 stock's P/B looks solid versus its industry's average P/B of 3.04. Within the past 52 weeks, CACI's P/B has been as high as 3.51 and as low as 2.06, with a median of 2.80.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CACI has a P/S ratio of 0.93. This compares to its industry's average P/S of 2.51.

Finally, investors will want to recognize that CACI has a P/CF ratio of 12.12. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14. Over the past 52 weeks, CACI's P/CF has been as high as 21.58 and as low as 12.12, with a median of 17.54.

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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