We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Science Applications International Corporation (SAIC) Soars to 52-Week High, Time to Cash Out?
Read MoreHide Full Article
Have you been paying attention to shares of SAIC (SAIC - Free Report) ? Shares have been on the move with the stock up 21.2% over the past month. The stock hit a new 52-week high of $154.46 in the previous session. SAIC has gained 50.9% since the start of the year compared to the 9.7% move for the Zacks Computer and Technology sector and the -14% return for the Zacks Computers - IT Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 31, 2026, SAIC reported EPS of $3.01 versus consensus estimate of $2.25 while it beat the consensus revenue estimate by 7.52%.
For the current fiscal year, SAIC is expected to post earnings of $10.77 per share on $7.28 in revenues. This represents a 0.19% change in EPS on a 0.25% change in revenues. For the next fiscal year, the company is expected to earn $10.91 per share on $7.38 in revenues. This represents a year-over-year change of 1.33% and 1.35%, respectively.
Valuation Metrics
Though SAIC has recently hit a 52-week high, what is next for SAIC? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
SAIC has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.3X. On a trailing cash flow basis, the stock currently trades at 10.6X versus its peer group's average of 12.9X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making SAIC an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, SAIC currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SAIC fits the bill. Thus, it seems as though SAIC shares could have a bit more room to run in the near term.
How Does SAIC Stack Up to the Competition?
Shares of SAIC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is ExlService Holdings, Inc. (EXLS - Free Report) . EXLS has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. ExlService Holdings, Inc. beat our consensus estimate by 10.71%, and for the current fiscal year, EXLS is expected to post earnings of $2.64 per share on revenue of $2.43 billion.
Shares of ExlService Holdings, Inc. have gained 15.9% over the past month, and currently trade at a forward P/E of 17.67X and a P/CF of 18.98X.
The Computers - IT Services industry is in the top 42% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SAIC and EXLS, even beyond their own solid fundamental situation.
View the Zacks #1 Rank List
Image: Bigstock
Science Applications International Corporation (SAIC) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of SAIC (SAIC - Free Report) ? Shares have been on the move with the stock up 21.2% over the past month. The stock hit a new 52-week high of $154.46 in the previous session. SAIC has gained 50.9% since the start of the year compared to the 9.7% move for the Zacks Computer and Technology sector and the -14% return for the Zacks Computers - IT Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 31, 2026, SAIC reported EPS of $3.01 versus consensus estimate of $2.25 while it beat the consensus revenue estimate by 7.52%.
For the current fiscal year, SAIC is expected to post earnings of $10.77 per share on $7.28 in revenues. This represents a 0.19% change in EPS on a 0.25% change in revenues. For the next fiscal year, the company is expected to earn $10.91 per share on $7.38 in revenues. This represents a year-over-year change of 1.33% and 1.35%, respectively.
Valuation Metrics
Though SAIC has recently hit a 52-week high, what is next for SAIC? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
SAIC has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 15.3X. On a trailing cash flow basis, the stock currently trades at 10.6X versus its peer group's average of 12.9X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making SAIC an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, SAIC currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SAIC fits the bill. Thus, it seems as though SAIC shares could have a bit more room to run in the near term.
How Does SAIC Stack Up to the Competition?
Shares of SAIC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is ExlService Holdings, Inc. (EXLS - Free Report) . EXLS has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. ExlService Holdings, Inc. beat our consensus estimate by 10.71%, and for the current fiscal year, EXLS is expected to post earnings of $2.64 per share on revenue of $2.43 billion.
Shares of ExlService Holdings, Inc. have gained 15.9% over the past month, and currently trade at a forward P/E of 17.67X and a P/CF of 18.98X.
The Computers - IT Services industry is in the top 42% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SAIC and EXLS, even beyond their own solid fundamental situation.