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Is CACI International (CACI) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is CACI International (CACI - Free Report) . CACI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 15.39. This compares to its industry's average Forward P/E of 22.75. Over the past year, CACI's Forward P/E has been as high as 21.36 and as low as 12.36, with a median of 17.93.

Investors will also notice that CACI has a PEG ratio of 1.38. 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. CACI's PEG compares to its industry's average PEG of 2.20. Within the past year, CACI's PEG has been as high as 2.14 and as low as 1.24, with a median of 1.79.

Investors should also recognize that CACI has a P/B ratio of 2.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.90. Within the past 52 weeks, CACI's P/B has been as high as 2.87 and as low as 1.68, with a median of 2.27.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.95. This compares to its industry's average P/S of 1.04.

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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