CACI International Remains Well Poised for Long-Term Growth

On Jan 13, Zacks Investment Research updated the research report on information technology services provider CACI International Inc. CACI.

Based in Arlington, VA, CACI International delivers IT applications and infrastructure to improve communications and secure the integrity of information systems and networks; enhance data collection and analysis; and increase efficiency and mission effectiveness. Over the years, the company has successfully provided support services to the U.S. federal forces.  

CACI International's system integration skills and intelligence expertise consume a significant portion of the funds earmarked for the Department of Homeland Security, while creating systems that foster the sharing of critical information among all intelligence agencies. We believe the company is comfortably positioned, given its favored relationship with the Department of Defense. Moreover, cyber attacks are creating increased awareness, leading to more demand for cyber solutions.

Furthermore, CACI International has a large pipeline of new projects and continues to win deals at regular intervals. These back-to-back contract wins are the key catalysts driving success perennially for the company. In addition, having the government as a big client lends stability to the business and moderates fluctuations in revenue. Although the government generally has a lengthy approval process, the project earns money for a number of years after it is approved. Moreover, government contracts also improve the visibility of future revenue streams.

The company has been doing very well with a record level of awards, which reflects its disciplined business development actions, consistent operational excellence and high customer satisfaction. The company's robust business model is expected to help it grow and achieve newer heights. In addition, the company anticipates to significantly benefit from its cost-reduction program. CACI International also remains focused on its strategy to grow in larger markets and leverage mergers and acquisitions to further increase its market share and create long-term value for its shareholders.

CACI currently has a Zacks Rank #3 (Hold). Some other better-ranked stocks in the industry worth reckoning include CA, Inc. CA, The KEYW Holding Corporation KEYW and Epiq Systems, Inc. EPIQ, each carrying a Zacks Rank #2 (Buy).

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