1) CACI International Inc (NYSE:CACI)
Stock Price as of February 20: $327.0
52-week Low: $327.0
Average Upside Potential: ~64.3%
Number of Hedge Fund Holders: 48
CACI International Inc (NYSE:CACI) is engaged in the provision of expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors. Raymond James analyst Brian Gesuale upped the company’s price target to $490 from $475, keeping an “Outperform” rating. The firm believes that CACI International Inc (NYSE:CACI)’s fundamentals continue to trend above historical averages, and the management’s confidence and visibility in the business remain strong considering the raised guidance.
Notably, the company has increased its FY 2025 revenue guidance, courtesy of higher organic growth expectations. CACI International Inc (NYSE:CACI) now expects revenues to come in the range of $8,450 million – $8,650 million as compared to the previous range of $8,370 million – $8,570 million. The focus on strategic investments, mainly in technology and capabilities aligned with government priorities, places CACI International Inc (NYSE:CACI) well for long-term success.
Through continuous investments, CACI International Inc (NYSE:CACI) is expected to further enhance its competitive edge in securing high-value contracts in critical areas including national security, intelligence, and defense. Meridian Funds, managed by ArrowMark Partners, released its Q3 2024 investor letter. Here is what the fund said:
“CACI International Inc (NYSE:CACI) is an IT consultant and provider of mission-critical technology to the U.S. Government and its agencies, which account for nearly 95% of its sales. CACI plays a vital role in modernizing IT infrastructure, systems, and other essential defense needs for the U.S. We have held CACI for over 10 years as the company has consistently grown into a larger supplier to the U.S., and increasingly, to our allies. The company’s stable growth and role as an essential provider of U.S. defense infrastructure were recognized by the market, delivering a solid return for shareholders in the quarter. We maintained our position throughout the period and, as of quarter-end, CACI was the Fund’s largest holding.”
While we acknowledge the potential of CACI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than CACI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
