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CACI Strengthens Foothold in Intelligence Services Space

Zacks Equity Research

CACI International Inc.CACI, a defense and intelligence information technology company based in Arlington, VA, was recently awarded a five-year contract worth approximately $1.77 billion. Per the deal, the company will offeranalytical operations, integrated intelligence, and training services to the Joint Improvised-Threat Defeat Organization (JIDO).CACI has a history of providing is expertise and solutions to various government agencies around the world. This contract will boost its goodwill, which will help the company win more such contracts in the near future.

The deal will help the company strengthen its foothold in the Intelligence Services market.

CACI has worked with JIDO and its predecessor organizations for about 10 years, due to which it understands the critical needs of the latter. Per the contract, CACI will support JIDO’s critical Focused Support/Decisive Effort mission by assisting the joint forces in integrating capabilities, technologies, and processes to help defeat enemy networks worldwide.

CACI will provide time-sensitive support and sophisticated intelligence technologies that will enable safety and help the combatant commands stay ahead of complex and increasing threats.

Per a report by Research and Markets, the estimated global threat intelligence security market size is expected to be worth $5,860.5 million by 2020, with a CAGR (compound annual growth rate) of 14.3% between 2015 and 2020. Such contracts will enable the company improve its top line, going ahead.

On the back of continuous contract wins, CACI significantly outperformed the Zacks categorized Computer Services industry with an average return of 30.4% compared with 1.1% for the latter, over a period of 90 days. In addition, over the same time frame, earnings estimates for the current year increased by 0.32%. This estimate trend was been impacted by the company’s organic growth, which looks promising.

CACI remains focused on the federal government marketplace and capturing more market share. The company intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening its existing customer relationships while building newer ones. In addition, it anticipates benefiting significantly from its cost-reduction program.

CACI currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include CSG Systems International Inc. CSGS, Ebix Inc. EBIX and WidePoint Corporation WYY, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CSG Systems has beaten estimates in all the trailing four quarters with an average positive earnings surprise of 24.9%.

Ebix has a long-term earnings growth expectation of 10% and has beaten estimates in all the trailing four quarters with an average positive earnings surprise of 15%.

WidePoint has beaten estimates in all the trailing four quarters with an average positive earnings surprise of 37.5%.

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