Is Science Applications International Corporation (NYSE:SAIC) Potentially Underrated?

Science Applications International Corporation (NYSE:SAIC) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SAIC, it is a company with a an impressive track record of performance, trading at a great value. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Science Applications International here.

Good value with proven track record

SAIC’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if SAIC’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the it industry, SAIC is also trading below its peers, relative to earnings generated. This bolsters the proposition that SAIC’s price is currently discounted.

NYSE:SAIC Income Statement Export January 19th 19

Next Steps:

For Science Applications International, I’ve put together three essential factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for SAIC’s future growth? Take a look at our free research report of analyst consensus for SAIC’s outlook.

2. Financial Health: Are SAIC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SAIC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.