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Booz Allen Hamilton Holding Corporation (BAH) - free report >>
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Booz Allen Hamilton Holding Corporation (BAH) - free report >>
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Are Investors Undervaluing Booz Allen Hamilton (BAH) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Booz Allen Hamilton (BAH - Free Report) is a stock many investors are watching right now. BAH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BAH has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.09.
Finally, investors will want to recognize that BAH has a P/CF ratio of 16.97. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 19.35. Over the past year, BAH's P/CF has been as high as 18.49 and as low as 14.67, with a median of 16.57.
Value investors will likely look at more than just these metrics, but the above data helps show that Booz Allen Hamilton is likely undervalued currently. And when considering the strength of its earnings outlook, BAH sticks out at as one of the market's strongest value stocks.