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Should Value Investors Buy CACI International (CACI) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CACI International (CACI - Free Report) . CACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 17.33, while its industry has an average P/E of 19.82. Over the past 52 weeks, CACI's Forward P/E has been as high as 20.63 and as low as 13.45, with a median of 17.54.
We also note that CACI holds a PEG ratio of 1.73. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CACI's PEG compares to its industry's average PEG of 1.92. CACI's PEG has been as high as 2.06 and as low as 1.34, with a median of 1.75, all within the past year.
Another valuation metric that we should highlight is CACI's P/B ratio of 2.23. 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. CACI's current P/B looks attractive when compared to its industry's average P/B of 3.59. Over the past 12 months, CACI's P/B has been as high as 2.33 and as low as 1.55, with a median of 2.04.
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 1.11. This compares to its industry's average P/S of 1.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CACI International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CACI feels like a great value stock at the moment.
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Should Value Investors Buy CACI International (CACI) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is CACI International (CACI - Free Report) . CACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 17.33, while its industry has an average P/E of 19.82. Over the past 52 weeks, CACI's Forward P/E has been as high as 20.63 and as low as 13.45, with a median of 17.54.
We also note that CACI holds a PEG ratio of 1.73. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CACI's PEG compares to its industry's average PEG of 1.92. CACI's PEG has been as high as 2.06 and as low as 1.34, with a median of 1.75, all within the past year.
Another valuation metric that we should highlight is CACI's P/B ratio of 2.23. 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. CACI's current P/B looks attractive when compared to its industry's average P/B of 3.59. Over the past 12 months, CACI's P/B has been as high as 2.33 and as low as 1.55, with a median of 2.04.
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 1.11. This compares to its industry's average P/S of 1.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CACI International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CACI feels like a great value stock at the moment.