In this article, we discuss the 5 best prison and law enforcement stocks to buy now. If you want to see more stocks in this selection, go directly to the 11 Best Prison and Law Enforcement Stocks To Buy Now.
5. CACI International Inc (NYSE:CACI)
Number of Hedge Fund Holders: 22
CACI International Inc (NYSE:CACI) is a Reston, Virginia-based provider of IT solutions to numerous federal government entities, including law enforcement agencies.
In 2021, CACI International Inc (NYSE:CACI) acquired Bluestones Analytics to aid law enforcement agencies in monitoring the Dark Web and help them highlight threats through the data collection mechanism. CACI International Inc (NYSE:CACI) received the Gold Edison Award for its DarkBlue Intelligence Platform in April 2022. Analysts think CACI International Inc (NYSE:CACI) has a long history of consistently adding value and increasing free cash flow per share. At 2.5x net, the company’s balance sheet is almost under-leveraged, giving room for future acquisitions and share repurchases.
Upslope Capital Management discussed its outlook on one of the best prison stocks in its Q3 2022 investor letter. Here’s what the firm said:
“CACI International Inc (NYSE:CACI) provides specialized technology and consulting services, primarily to U.S. defense and intelligence agencies. The U.S. Army is CACI’s single largest customer. This position replaces BWXT in Upslope’s “defense basket” (articulated in Q1 on p. 4). CACI’s business is mostly split across Expertise (providing talent to government agencies – e.g. software engineers) and Technology (design and delivery of specific technology-oriented services and products, including for example, battlefield hardware). The company offers its services and products in support of both day-to-day agency operations and specific missions.
At a high-level, CACI reminds me of another Upslope long in an unrelated sector: Silgan Holdings (packaging/dispensing and food can business). Both are truly sleepy value stocks that trade for low doubledigit earnings multiples, but have a strong history of steady value creation and free cash flow per share growth. Both the stocks and underlying businesses appear very well-positioned for the uncertain macro (or geopolitical, in CACI’s case) environment we’re likely to face in the years ahead. Other notable thesis points for CACI specifically:
- Long-term Geopolitical & Other Tailwinds – like other components of Upslope’s defense basket, CACI should benefit from an attractive defense spending environment for years to come. CACI should also benefit from IT modernization efforts in U.S. government agencies, as well as its strength in cyber/electronic warfare offerings…” (Click here to read the full text)
