Why CACI International (CACI) is a High-Potential Long-Term Growth Stock in the Defense Tech Sector

CACI International (CACI), a leading provider of IT and professional services to government and commercial clients, exemplifies this profile. Leveraging 's Style Scores and strong earnings momentum, CACI demonstrates a unique blend of value, growth, and momentum characteristics that position it as a high-potential long-term play.

Strategic Position in the Defense Tech Sector

CACI operates in a sector poised for sustained demand due to global geopolitical tensions and the U.S. government's prioritization of defense modernization. As a key player in cybersecurity, cloud computing, and mission-critical systems, CACI benefits from long-term contracts and recurring revenue streams. According to a report, , suggesting a reasonable valuation for its growth prospects. This aligns with the sector's broader trend of premium valuations for firms with strong government ties and technological expertise.

Zacks Style Scores: A Balanced Approach to Growth and Value

CACI's Zacks Style Scores highlight its strengths across value, growth, and momentum metrics. While the company holds a Zacks Rank #3 (Hold), its VGM Score of B indicates a favorable combination of these attributes. Breaking this down:

1. Growth Style Score of B: CACI's . For fiscal 2026, analysts have revised earnings estimates upward , reflecting confidence in its long-term trajectory.
2. Momentum Style Score of B: The stock has , driven by consistent outperformance of earnings expectations. CACI's further reinforces its momentum, signaling strong execution relative to market forecasts.
3. Value Style Score of B, which is slightly above 1, CACI's valuation appears justified by its growth potential. , particularly for a company with recurring government contracts.

While the VGM Score is not a perfect A, the individual components highlight CACI's balanced approach to growth and valuation, making it an attractive candidate for investors seeking long-term appreciation.

Earnings Momentum: A Catalyst for Long-Term Growth

Earnings momentum is a critical driver of CACI's investment appeal. Over the past 60 days, six analysts have revised their 2025 earnings estimates upward, . This upward revision, coupled with , demonstrates the company's ability to consistently exceed expectations.

For context, CACI's momentum is not merely short-term noise. The stock's aligns with broader investor confidence in its long-term prospects. This is further supported by its for 2025, which positions it to benefit from the defense sector's multi-year spending cycles.

Conclusion: A Compelling Case for Long-Term Investors

CACI International's strategic positioning in the defense tech sector, combined with its strong Zacks Style Scores and earnings momentum, makes it a high-potential long-term growth stock. While its Zacks Rank #3 (Hold) suggests a neutral outlook, the company's favorable valuation, consistent earnings outperformance, and upward revisions from analysts indicate untapped upside. For investors prioritizing companies with a mix of growth, value, and momentum, CACI offers a compelling opportunity to participate in the defense sector's long-term expansion.