CACI International CACI shares rallied 5.8% in the last trading session to close at $391.26. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.8% gain over the past four weeks.
The optimism surrounding the stock is largely driven by CACI’s new business wins and organic expansions. As CACI derives more than 90% of its revenues from the U.S. defense, intelligence and homeland security agencies, its revenues are relatively stable. Adding on this, the U.S. government’s DOGE initiative is likely to benefit the company as this initiative is focused on modernizing government IT and networks, an area where CACI is a leader.
This defense contractor is expected to post quarterly earnings of $5.50 per share in its upcoming report, which represents a year-over-year change of -4.2%. Revenues are expected to be $2.13 billion, up 10.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For CACI International, the consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CACI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
CACI International is a member of the Zacks Computer - Services industry. One other stock in the same industry, CSG Systems CSGS, finished the last trading session 0.8% higher at $61.15. CSGS has returned -5.1% over the past month.
For CSG Systems
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CACI International, Inc. (CACI): Free Stock Analysis Report CSG Systems International, Inc. (CSGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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