Why CACI International Inc (NYSE:CACI) Could Be Worth Watching

CACI International Inc Class A +0.72%

CACI International Inc Class A

CACI

433.77

+0.72%

While CACI International Inc (NYSE:CACI) might not have the largest market cap around , it led the NYSE gainers with a relatively large price hike in the past couple of weeks. The company is now trading at yearly-high levels following the recent surge in its share price. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at CACI International’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for CACI International

What Is CACI International Worth?

Great news for investors – CACI International is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $541.70, but it is currently trading at US$379 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that CACI International’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Can we expect growth from CACI International?

earnings-and-revenue-growth
NYSE:CACI Earnings and Revenue Growth March 28th 2024

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 30% over the next couple of years, the future seems bright for CACI International. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since CACI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on CACI for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CACI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

So while earnings quality is important, it's equally important to consider the risks facing CACI International at this point in time. At Simply Wall St, we found 1 warning sign for CACI International and we think they deserve your attention.

If you are no longer interested in CACI International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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