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

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Investors interested in stocks from the Computer - Services sector have probably already heard of CACI International (CACI - Free Report) and Forrester Research (FORR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies 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). Investors should feel comfortable knowing that CACI likely has seen a stronger improvement to its earnings outlook than FORR has recently. But this is just one piece of the puzzle for value investors.

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 18.34, while FORR has a forward P/E of 22.48. We also note that CACI has a PEG ratio of 1.83. 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 1.87.

Another notable valuation metric for CACI is its P/B ratio of 2.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FORR has a P/B of 4.35.

Based on these metrics and many more, CACI holds a Value grade of B, while FORR has a Value grade of C.

CACI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CACI is likely the superior value option right now.


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