NCI, Inc. (NASDAQ: NCIT) is
an information technology firm, providing engineering and professional services to U.S. federal government agencies. Company expertise involves enterprise systems management, network engineering, legacy migration, information assurance, systems integration, logistics and training. NCI employs 2,200, at nearly 100 locations worldwide.
The firm pleased investors late last month, when it reported Q1 EPS of 27 cents and revenues of $91.5 million. Analysts had been looking for 26 cents and $87.9 million. Total backlog passed the $1 billion mark. Management also guided Q2 EPS to 27-29 cents (27 cent consensus), Q2 revenues to $92-$96 million ($90.85M consensus), FY08 EPS to $1.14-$1.22 ($1.13 consensus) and FY08 revenues to $385-$395 million ($372.16M consensus).
The news
kept NCIT shares cycling through a positive 14-week trading channel. The price is currently consolidating at the base of that channel, where oversold CCI, MACD and Stochastic technical parameters suggest the potential for a rise back toward the top. Correspondence of the stock's 30-day moving average to the base of the channel backs the rebound notion.
Brokers recommend the issue with seven "strong buys", one "buy" and two "holds". Analysts see an 18% average annual growth rate, through the next five years. The NCIT Price to Sales ratio (0.89), Price to Book ratio (3.50), Price to Free Cash Flow ratio (18.22) and Sales Growth rate (42.32%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 44% of the outstanding shares. Over the past 52 weeks, the stock has traded between $13.32 and $24.36. A stop-loss of $18.20 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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