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CACI or FORR: Which Is the Better Value Stock Right Now?

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Investors interested in Computer - Services stocks are likely familiar with CACI International (CACI - Free Report) and Forrester Research (FORR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, CACI International is sporting a Zacks Rank of #2 (Buy), while Forrester Research has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CACI is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CACI currently has a forward P/E ratio of 17.82, while FORR has a forward P/E of 29.75. We also note that CACI has a PEG ratio of 1.78. 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. FORR currently has a PEG ratio of 2.48.

Another notable valuation metric for CACI is its P/B ratio of 2.29. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FORR has a P/B of 6.12.

These are just a few of the metrics contributing to CACI's Value grade of A and FORR's Value grade of D.

CACI stands above FORR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CACI is the superior value option right now.


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