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CACI vs. GIB: Which Stock Should Value Investors Buy Now?
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Investors interested in Computer - Services stocks are likely familiar with CACI International (CACI - Free Report) and CGI Group (GIB - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
CACI International and CGI Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CACI has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CACI currently has a forward P/E ratio of 15.74, while GIB has a forward P/E of 18.48. We also note that CACI has a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GIB currently has a PEG ratio of 1.90.
Another notable valuation metric for CACI is its P/B ratio of 2.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GIB has a P/B of 3.92.
Based on these metrics and many more, CACI holds a Value grade of B, while GIB has a Value grade of C.
CACI sticks out from GIB in both our Zacks Rank and Style Scores models, so value investors will likely feel that CACI is the better option right now.
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CACI vs. GIB: Which Stock Should Value Investors Buy Now?
Investors interested in Computer - Services stocks are likely familiar with CACI International (CACI - Free Report) and CGI Group (GIB - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
CACI International and CGI Group are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CACI has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CACI currently has a forward P/E ratio of 15.74, while GIB has a forward P/E of 18.48. We also note that CACI has a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GIB currently has a PEG ratio of 1.90.
Another notable valuation metric for CACI is its P/B ratio of 2.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GIB has a P/B of 3.92.
Based on these metrics and many more, CACI holds a Value grade of B, while GIB has a Value grade of C.
CACI sticks out from GIB in both our Zacks Rank and Style Scores models, so value investors will likely feel that CACI is the better option right now.