Have you been paying attention to shares of SAIC (SAIC)? Shares have been on the move with the stock up 9% over the past month. The stock hit a new 52-week high of $125.63 in the previous session. SAIC has gained 23.5% since the start of the year compared to the 16.8% gain for the Zacks Computer and Technology sector and the -17.1% return for the Zacks Computers - IT Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 1, 2026, SAIC reported EPS of $3.23 versus consensus estimate of $2.26.
For the current fiscal year, SAIC is expected to post earnings of $10.01 per share on $7.16 in revenues. This represents a -6.88% change in EPS on a -2.53% change in revenues. For the next fiscal year, the company is expected to earn $10.79 per share on $7.3 in revenues. This represents a year-over-year change of 7.82% and 1.9%, respectively.
Valuation Metrics
Though SAIC has recently hit a 52-week high, what is next for SAIC? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
SAIC has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.2X. On a trailing cash flow basis, the stock currently trades at 8.6X versus its peer group's average of 12.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making SAIC an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, SAIC currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SAIC passes the test. Thus, it seems as though SAIC shares could have a bit more room to run in the near term.
How Does SAIC Stack Up to the Competition?
Shares of SAIC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Grid Dynamics Holdings, Inc. (GDYN). GDYN has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. Grid Dynamics Holdings, Inc. beat our consensus estimate by 10.00%, and for the current fiscal year, GDYN is expected to post earnings of $0.42 per share on revenue of $437.4 million.
Shares of Grid Dynamics Holdings, Inc. have gained 28% over the past month, and currently trade at a forward P/E of 18.16X and a P/CF of 18.58X.
The Computers - IT Services industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for SAIC and GDYN, even beyond their own solid fundamental situation.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Â
Â
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.