Event context and recent performance

Science Applications International (SAIC) has been drawing attention after recent share price moves, with the stock last closing at $108.06. That has come alongside modest annual revenue and net income growth.

Over the past month, SAIC shares show a 6.38% return, with the past 3 months at 11.54% and year to date at 6.76%. The 1 year total return stands at a 5.63% decline.

SAIC’s recent 11.54% 3-month share price return contrasts with a 1-year total shareholder return decline of 5.63%, suggesting near term momentum has improved while longer term gains remain modest.

If SAIC’s shift in sentiment has you reassessing the sector, it could be a useful moment to scan other aerospace and defense stocks for additional ideas.

With SAIC trading at $108.06 alongside modest annual revenue and net income growth, plus an indicated discount to some valuation estimates, you have to ask: is this a genuine opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 4.7% Undervalued

The most followed narrative puts Science Applications International’s fair value at about $113.38 versus the last close at $108.06, framing the shares as modestly discounted.

The company's strategic focus on differentiated, high-growth capabilities in areas such as mission integration, digital transformation, and advanced IT modernization positions SAIC to benefit from the government's ongoing push to update legacy systems, likely accelerating top-line growth as procurement normalizes.

A robust pipeline and strong book-to-bill ratios, along with sustained win rates in recompetes and pending award backlogs, provide significant building blocks for revenue recovery and long-term expansion once current government funding delays and efficiency initiatives subside.

Curious how modest revenue growth, tighter margins and a future earnings multiple all combine into that fair value? The key assumptions may surprise you.

Result: Fair Value of $113.38 (UNDERVALUED)

However, there are clear warning signs too, including weaker revenue guidance and tighter federal budgets that could pressure SAIC’s backlog, margins, and the valuation narrative investors are leaning on.

Build Your Own Science Applications International Narrative

If you see the numbers differently or prefer to test your own assumptions against the data, you can build a custom view in minutes: Do it your way.

A great starting point for your Science Applications International research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If SAIC has caught your attention, do not stop there. The real edge often comes from comparing it with a few other well chosen ideas side by side.

• Target potential mispricings by scanning these 875 undervalued stocks based on cash flows that might offer more attractive entry points based on their fundamentals.
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• Boost your income focus by reviewing these 12 dividend stocks with yields > 3% that may align better with a yield driven approach.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.