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CACI's Winning Streak Continues With $413 Million Contract

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CACI International Inc (CACI - Free Report) has been awarded a $413 million five-year federal contract by the U.S. Army Communications-Electronics Research, Development and Engineering Center. The deal requires the company to continue supporting the Army’s ground intelligence platform — the TROJAN STRONG family of systems — and commence new work to expand its capabilities.

This is the second contract award received by CACI since the beginning of this month. Few days ago, the company was awarded a $194 million task order to provide IT support to the Transportation Security Administration, under the Department of Homeland Security’s EAGLE II contract vehicle.

The company has been doing very well with a record level of awards, which reflects its disciplined business development actions, consistent operational excellence and high customer satisfaction.

Notably, contract awards in the last reported quarter were worth $2.54 billion, up a whopping 111% year over year, of which approximately 60% came from new businesses.

Federal Exposure Drives Growth

A leader in IT outsourcing for the U.S. federal government, CACI has ample exposure to the rapidly growing Department of Defense (“DoD”) and Department of Homeland Security budgets.

CACI’s system integration skills and intelligence expertise 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. We believe the company is comfortably positioned, given its favored relationship with the DoD.

CACI has a large pipeline of new projects and continues to win more deals at regular intervals. Notably, as of Sep 30, 2018, its total backlog was $13 billion. These back-to-back contract wins are the key catalysts driving success perennially for the company.

CACI’s strategy of winning high-value contracts, delivering excellence to its customers and deploying its capital for growth is expected to help it achieve newer heights.

CACI International, Inc. Revenue (TTM)

Zacks Rank and Other Stocks to Consider

CACI currently has a Zacks Rank #1 (Strong Buy).

A few other top-ranked stocks in the broader technology sector are Stratasys, Ltd. (SSYS - Free Report) , Intel Corporation (INTC - Free Report) and Castlight Health (CSLT - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Stratasys, Intel and Castlight is projected to be 15.75%, 8.42% and 22.5%, respectively.

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