CACI International (CACI) surges 3.8%: Is this an indication of further gains?

CACI International (CACI) shares soared 3.8% in the last trading session to close at $584.09. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.6% loss over the past four weeks.

The optimism surrounding the stock can be attributed to CACI International’s growth driven by national security spending, rising demand for Counter-UAS and electronic warfare, accelerating network and digital modernization, strong backlog visibility and expanding NATO opportunities.

This defense contractor is expected to post quarterly earnings of $6.47 per share in its upcoming report, which represents a year-over-year change of +8.7%. Revenues are expected to be $2.28 billion, up 8.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For CACI International, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CACI going forward to see if this recent jump can turn into more strength down the road.

CACI International is a member of the Zacks Computer - Services industry. One other stock in the same industry, CGI Group (GIB), finished the last trading session 2.6% higher at $94.41. GIB has returned 2.1% over the past month.

CGI's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.57. Compared to the company's year-ago EPS, this represents a change of +11.4%. CGI currently boasts a Zacks Rank of #3 (Hold).

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