We came across a bullish thesis on CACI International Inc (CACI) on Twitter by smantel. In this article, we will summarize the bulls’ thesis on CACI. CACI International Inc (CACI)’s share was trading at $353.02 as of March 4th. CACI’s trailing and forward P/E were 16.57 and 12.63 respectively according to Yahoo Finance.
A computer engineer analyzing a server network for cyber security threats.
CACI International remains an undervalued leader in defense services and IT modernization, with 94% of its revenue tied to homeland security, a sector more likely to see increased spending than cuts. The recent sell-off triggered by concerns over the D.O.G.E. initiative appears misplaced, as the program primarily targets civilian government waste rather than cutting-edge defense and IT modernization projects. With a strong presence in mission-critical infrastructure, ISR, border control, and AI-driven defense technology, CACI is positioned for continued growth, particularly as defense spending priorities remain focused on modernization and cybersecurity.
CACI’s revenue model is highly resilient, with 75% of its revenue being recurring and 61% on cost-plus contracts, ensuring stability even in uncertain economic environments. The company has been actively repurchasing shares through an accelerated buyback program, further signaling management’s confidence in its undervaluation. Trading at a discount to peers despite strong growth and margins, CACI offers a compelling investment opportunity.
Analyst sentiment remains overwhelmingly bullish, with multiple firms maintaining buy or overweight ratings, and the consensus target price of $576 implies a nearly 29% upside from current levels. The company continues to secure high-value contracts, including an $805 million task order with Naval X to support AI, cyber, and command-and-control technologies, a $314 million contract to enhance cyber resiliency for undersea warfare systems, and a $100 million award for TLS Manpack electronic warfare capabilities. Despite the recent unjustified sell-off, CACI remains a top rebound candidate with a record $32.4 billion backlog, demonstrating strong future revenue visibility and growth potential.
CACI International Inc (CACI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held CACI at the end of the fourth quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of CACI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an 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.
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Disclosure: None. This article was originally published at Insider Monkey.