On Mar 28, 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.
A leader in IT outsourcing for the U.S. federal government, CACI International has ample exposure to the rapidly growing Department of Defense and Department of Homeland Security budgets. The company uses a significant portion of the funds for the manufacture of systems that help in 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 a heightened demand for cyber solutions.
In addition, CACI International has a large pipeline of new projects and continues to win more deals at regular intervals. These back-to-back contract wins are the key catalysts to the company’s success. Furthermore, having the government as a big client lends stability to the business and moderates fluctuations in revenue. Although the government’s approval process is usually lengthy, the project continues earning money even years after it has been approved. Moreover, government contracts 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, it anticipates significant benefits 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 International currently has a Zacks Rank #2 (Buy). Some equally-ranked stocks in the industry worth reckoning include Perficient Inc. PRFT, The KEYW Holding Corporation KEYW and Ebix Inc. EBIX.
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