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Are Investors Undervaluing CACI International (CACI) Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is CACI International (CACI - Free Report) . CACI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 17.84, which compares to its industry's average of 19.96. 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 17.49.

Investors should also note that CACI holds a PEG ratio of 1.78. 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 1.93. Over the last 12 months, CACI's PEG has been as high as 2.06 and as low as 1.35, with a median of 1.75.

Another valuation metric that we should highlight is CACI's P/B ratio of 2.31. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.63. CACI's P/B has been as high as 2.33 and as low as 1.55, with a median of 2.04, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CACI has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.57.

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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