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Are Investors Undervaluing CACI International (CACI) 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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

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 has a Forward P/E ratio of 19.01. This compares to its industry's average Forward P/E of 21.63. Over the past year, CACI's Forward P/E has been as high as 22.28 and as low as 14.92, with a median of 18.72.

CACI is also sporting a PEG ratio of 1.90. 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 1.98. Over the past 52 weeks, CACI's PEG has been as high as 2.23 and as low as 1.49, with a median of 1.87.

Investors should also recognize that CACI has a P/B ratio of 2.11. 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. This stock's P/B looks attractive against its industry's average P/B of 3.44. CACI's P/B has been as high as 2.15 and as low as 1.64, with a median of 1.84, over the past year.

Finally, our model also underscores that CACI has a P/CF ratio of 11.99. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CACI's P/CF compares to its industry's average P/CF of 15.12. Within the past 12 months, CACI's P/CF has been as high as 14.93 and as low as 9.66, with a median of 11.81.

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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