SAIC Should I Buy
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Science Applications International Corp (SAIC) is not a strong buy at this time for a beginner investor with a long-term strategy. The stock is currently trading pre-market at $95.23, which is below most analyst price targets but still within a bearish technical setup. The company's financial performance shows declining revenue and net income, and analysts have been lowering price targets. While there are no significant insider or hedge fund trades, and options sentiment is slightly bullish, the lack of strong positive catalysts and weak technical indicators suggest holding off on purchasing this stock for now.
The technical indicators for SAIC are bearish. The MACD histogram is negative (-0.346) and contracting, the RSI is neutral at 46.746, and the moving averages (SMA_200 > SMA_20 > SMA_5) confirm a bearish trend. The stock is trading below the pivot level of 96.815, with key support at 92.567 and resistance at 101.063.
SAIC's involvement in NASA's Artemis II mission as a mission assurance partner is a positive development, showcasing its role in high-profile government projects.
SAIC's Q4 financials show declining revenue (-4.79% YoY), net income (-13.27% YoY), and EPS (-6.47% YoY). Analysts have been lowering price targets, citing challenges in the government IT and services segment, competitive pressures, and declining revenue. Additionally, the stock is in a bearish technical trend.
In Q4 2026, SAIC's revenue dropped to $1.75 billion (-4.79% YoY), net income fell to $85 million (-13.27% YoY), and EPS declined to $1.88 (-6.47% YoY). However, gross margin increased slightly to 12.63% (+0.08% YoY). Overall, the financial performance reflects challenges in maintaining growth.
Analysts have a mixed view on SAIC. JPMorgan, Citi, and Stifel maintain Buy or Overweight ratings with price targets ranging from $110 to $120, while Jefferies and Truist have Hold ratings with lower targets. Goldman Sachs has a Sell rating with a price target of $82, citing declining revenue and competitive pressures in the government IT segment.
