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CACI - AI Stock Analysis

Analysis generated December 17, 2024

CACI International Inc (NYSE: CACI) is a prominent player in the information technology and professional services industry, delivering a wide range of solutions to both government and commercial clients. CACI provides services such as enterprise IT, cybersecurity, data analytics, and intelligence operations. With its broad portfolio, CACI is well-positioned to benefit from government spending on technology and defense.

Fundamental Analysis

CACI's performance in the last quarter presents a mixed picture. The company reported a revenue of $2.06 billion, which is a 2.95% decrease compared to the previous quarter but a 12.73% increase year-over-year. The quarterly decline may indicate short-term operational challenges, while the annual increase shows solid long-term growth.

Net income for the last quarter stood at $120 million, representing a decrease of 10.75% from the prior quarter but a significant 39.66% increase year-over-year. This suggests that, despite short-term pressures, CACI’s profitability has improved substantially over the past year.

EBITDA for the quarter was $215 million, down by 8.13% from the previous quarter but up by 24.29% year-over-year. The year-over-year improvement in EBITDA is a positive sign of growing operational efficiency and profitability.

The current P/E ratio of 20.32 is within a normal range for the industry, indicating that CACI is neither overvalued nor undervalued. However, insider selling in the last couple of months might be a bearish signal, potentially indicating that some executives may believe the stock is fairly valued or expect future downturns.

Technical Analysis

CACI’s current stock price is $416.95, a decrease of 11.44% over the past month. This short-term bearish movement may be a cause for concern. However, the stock is up by 30.42% compared to a year ago, showing a strong long-term bullish trend.

The trend is bearish in the short term. The current SMA10 is 424.38, which is lower than the previous SMA10 of 428.14, suggesting potential downward movement in the near term. The RSI is at 67.1, indicating a neutral condition, suggesting that the stock is neither overbought nor oversold.

Alternative Data Analysis

Recent alternative data metrics present a somewhat mixed outlook for CACI. The number of open job positions has decreased by 35% in the last couple of months, indicating potential cost-cutting measures. This could signal a focus on improving margins but is not ideal for a growth company.

Employee sentiment towards CACI is neutral, providing no strong indication of internal morale trends.

Web traffic to CACI’s page has increased by 21% in the last couple of months, suggesting a bullish outlook for customer acquisition. In terms of customer engagement, there has been a modest increase in social media activity with a 4% rise in Instagram followers, while Twitter followership has remained stable.

AltIndex’s AI score for CACI is 67, which is a buy signal, indicating that the stock may be poised for upward movement based on a combination of fundamental, technical, and alternative data.

Conclusion and Recommendation

Based on the analysis, CACI presents a mixed but generally positive outlook. The company shows strong year-over-year growth in revenue, net income, and EBITDA, although short-term performance metrics indicate some areas of concern. The stock exhibits a long-term bullish trend despite recent short-term declines, and alternative data points to increased customer engagement and stable employee sentiment.

Given the comprehensive analysis and the AI score indicating a buy signal, the stock may be a good addition to portfolios focused on long-term growth with a watchful eye on short-term volatility. However, potential investors should consider the recent insider selling and reduction in job postings as cautionary signs.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.