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CACI or GIB: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Computer - Services sector might want to consider either CACI International (CACI - Free Report) or CGI Group (GIB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, CACI International has a Zacks Rank of #2 (Buy), while CGI Group 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 GIB 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CACI currently has a forward P/E ratio of 19.41, while GIB has a forward P/E of 21.06. We also note that CACI has a PEG ratio of 1.94. 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. GIB currently has a PEG ratio of 2.24.
Another notable valuation metric for CACI is its P/B ratio of 2.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GIB has a P/B of 4.31.
These are just a few of the metrics contributing to CACI's Value grade of B and GIB's Value grade of C.
CACI has seen stronger estimate revision activity and sports more attractive valuation metrics than GIB, so it seems like value investors will conclude that CACI is the superior option right now.
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CACI or GIB: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Computer - Services sector might want to consider either CACI International (CACI - Free Report) or CGI Group (GIB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Currently, CACI International has a Zacks Rank of #2 (Buy), while CGI Group 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 GIB 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CACI currently has a forward P/E ratio of 19.41, while GIB has a forward P/E of 21.06. We also note that CACI has a PEG ratio of 1.94. 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. GIB currently has a PEG ratio of 2.24.
Another notable valuation metric for CACI is its P/B ratio of 2.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, GIB has a P/B of 4.31.
These are just a few of the metrics contributing to CACI's Value grade of B and GIB's Value grade of C.
CACI has seen stronger estimate revision activity and sports more attractive valuation metrics than GIB, so it seems like value investors will conclude that CACI is the superior option right now.