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CACI International (CACI) Soars 3.7%: Is Further Upside Left in the Stock?

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CACI International (CACI - Free Report) shares rallied 3.7% in the last trading session to close at $431.24. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.5% gain over the past four weeks.

The growing optimism surrounding the stock reflects investor confidence in its offerings and strategic initiatives. The company benefits from new business wins and organic expansions. Its disciplined business development actions, consistent operational excellence and high customer satisfaction help it win new deals at regular intervals. CACI’s sustained focus 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 is praiseworthy.

This defense contractor is expected to post quarterly earnings of $5.25 per share in its upcoming report, which represents a year-over-year change of +20.4%. Revenues are expected to be $2 billion, up 9.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For CACI International, the consensus EPS estimate for the quarter has been revised 2.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CACI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

CACI International is part of the Zacks Computer - Services industry. CGI Group (GIB - Free Report) , another stock in the same industry, closed the last trading session 1.3% lower at $107.72. GIB has returned -2.8% in the past month.

CGI's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.40. Compared to the company's year-ago EPS, this represents a change of +4.5%. CGI currently boasts a Zacks Rank of #3 (Hold).


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