CACI International Inc CACI recently secured a $43 million contract to provide modeling and simulation and sensor development support for the U.S. Army’s Night Vision and Electronic Sensors Directorate (NVESD) – an organization dedicated for the research and development of advanced night vision and sensor technologies. Investors were however unimpressed by the contract win, with shares of CACI decreasing marginally on Mar 6, following the announcement.
Under this contract, CACI aims to enhance the effectiveness of the armed forces in limited visibility conditions. CACI already has expertise in NVESD’s technical environment and is also familiar with its mission requirements. It aims to assist in developing and deploying technology enhancements that are likely to help the army to identify and detect threats. This contract further strengthens CACI’s business in the C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) market.
Going forward, this contract is expected to boost CACI's revenues. The company has a huge pipeline of new projects and continues to win deals at regular intervals. These contract wins are a key growth catalyst for the company. In addition, as the U.S. government is one of the company’s biggest clients, the steady revenue stream lends stability to its business.
Based in Arlington, VA, CACI 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. CACI’s system-integration skills and intelligence expertise help to win a significant portion of the funds earmarked for the Department of Homeland Security, while creating systems that facilitate sharing of critical information among all intelligence agencies.
CACI currently has a Zacks Rank #3 (Hold). Other stocks worth considering in the industry include Lionbridge Technologies Inc LIOX, carrying a Zacks Rank #1 (Strong Buy), and Carbonite, Inc. CARB and Ciber, Inc CBR, both carrying a Zacks Rank #2 (Buy).
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