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Science Applications Wins Cybersecurity Deal From Texas DIR

Zacks Equity Research

Science Applications International Corp. SAIC is benefiting from the continuous flow of high-value contracts. Recently, it won a $36-million, minimum four-year contract from the State of Texas Department of Information Resources (DIR) to secure data center infrastructure and network systems with its cybersecurity services.

The contract positions Science Applications as a prime contractor and can be extended for a year, for a maximum of four times after the initial four-year performance period is served.

The deal is expected to strengthen the company’s expertise in cross-functional cybersecurity operations. The company will provide technology and tactics to improve the security unit of the Data Center Services (DCS) program and increase returns on the DIR’s investment in privileged access management tools.

Science Applications International Corporation Price and Consensus

Science Applications International Corporation Price and Consensus
Science Applications International Corporation Price and Consensus

Science Applications International Corporation price-consensus-chart | Science Applications International Corporation Quote

Growing Presence in Security Scenario

Science Applications has a long-standing experience in supporting national security cyberspace operations. Its adaptive end-to-end security solution, CyberSecurity Edge, offers advanced data security to government customers.

Besides, Science Applications has worked on securing voting systems with blockchain technology.

Last month, the company partnered with The Goodyear Tire & Rubber Company on a pilot project to secure customer data across the supply chain with the help of blockchain technology.

SAIC Rides on Contract Wins

A record level of awards reflects Science Applications’ disciplined business development actions, consistent operational excellence and high customer satisfaction. Notably, as of Jan 31, the company’s total contract backlog was $15.3 billion.

Furthermore, having the government as a big client lends stability to the business and moderates fluctuation in revenues.

Notably, Science Applications reportedly was awarded $2.8 billion in national security contract awards for fiscal 2020.

In March, the company received a three-year, single-award, follow-on contract worth $45.2 million to continue supporting the Navy and Marine Corps in tactical warfare training.

Further, in January, the company received a $727-million Common Computing Environment (Cloud One) contract from the U.S. Air Force to aid the transformation of about 800 Air Force and U.S. Army mission applications to the cloud.

Moreover, in November last year, the company received contracts worth $582 million from space and intelligence community customers.

Back-to-back contract wins are the key catalysts driving the business perennially for Science Applications.

Zacks Rank and Other Key Picks

Science Applications currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are LogMein, Inc.LOGM, ManTech International Corporation MANT and Orange ORAN, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for LogMein, ManTech and Orange is currently pegged at 5%, 7.36% and 6.72%, respectively.

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