Have you been paying attention to shares of CACI InternationalCACI ? Shares have been on the move with the stock up 13.6% over the past month. CACI hit a new 52-week high of $167.80 in the previous session. CACI International has gained 26.6% since the start of the year compared to the 5.6% move for the Computer and Technology sector and the 11.4% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 2, 2018, CACI International reported EPS of $2.33 versus the Zacks Consensus Estimate of $1.8 while it beat the consensus revenue estimate by 0.22%.
For the current fiscal year, CACI International is expected to post earnings of $11.55 per share on $4.47 billion in revenues. This represents a 76.88% change in EPS on a 2.73% change in revenues. For the next fiscal year, the company is expected to earn $8.93 per share on $4.63 billion in revenues. This represents a year-over-year change of -22.61% and 3.52%, respectively.
Valuation Metrics
CACI International may be at a 52-week high right now, but what might the future hold for CACI? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
CACI International has a Value Score of A. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14.5X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 17.1X versus its peer group's average of 17.4X. Additionally, the stock has a PEG ratio of 1.45. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
CACI International, Inc. Price and Consensus
CACI International, Inc. Price and Consensus | CACI International, Inc. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CACI International currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if CACI International meets the list of requirements. Thus, it seems as though CACI shares could have a bit more room to run in the near term.
How Does CACI International Stack Up to the Competition?
Shares of CACI International have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Syntel SYNT , On Assignment ASGN , and SCIENCE APPLICATIONS INTERNATIONAL CORPORATION SAIC , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CACI, even beyond its own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CACI International, Inc. (CACI): Free Stock Analysis Report
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC): Free Stock Analysis Report
Syntel, Inc. (SYNT): Free Stock Analysis Report
On Assignment, Inc. (ASGN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
