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6 Reasons to Add Booz Allen Hamilton (BAH) to Your Portfolio
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Booz Allen Hamilton Holding Corporation (BAH - Free Report) is a Government Services stock that has performed well in the past year and has potential to sustain the momentum, going forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s check out what makes Booz Allen an attractive pick.
Share Price Performance
A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Booz Allen’s shares have rallied 33.8% compared with the industry’s growth of 15.1%.
Solid Rank & VGM Score
Booz Allen has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions
Three estimates for fiscal 2020 moved north in the past 60 days versus one downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2020 inched up 0.6%.
Positive Earnings Surprise History
Booz Allen has an impressive earnings surprise history. The company outpaced the consensus mark in all the trailing four quarters, delivering a positive earnings surprise of 10.3%, on average.
Strong Growth Prospects
The Zacks Consensus Estimate for fiscal 2020 earnings is currently pegged at $3.15, indicating year-over-year growth of 14.1%. Moreover, earnings are expected to register 12.6% rise in fiscal 2021. The stock has long-term expected earnings per share (EPS) growth rate of 13%.
Growth Factors
Booz Allen is currently in the pay-off period for Vision 2020, a strategy aimed at achieving sustainable long-term growth. Through the implementation of Vision 2020, the company has moved closer to clients’ core missions, expanded and diversified its talent base, and improved employee experience. It has increased innovation and technical capability, and expanded its portfolio of businesses, making a successful reentry into the global commercial market.
Booz Allen Hamilton Holding Corporation Revenue (TTM)
The company is well placed to achieve its targeted 66% growth in adjusted EPS over the three-year period from fiscal year 2018 to 2021 on the back of strong revenue growth and margin improvement.The top line continues to grow, driven by strong demand for its services and solutions and increase in headcount. Strong margins continue to benefit from robust contract performance, efficient business management, and an ongoing shift toward higher margin, technically focused work.
Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Genpact is 4.5%, 5.6% and 14%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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6 Reasons to Add Booz Allen Hamilton (BAH) to Your Portfolio
Booz Allen Hamilton Holding Corporation (BAH - Free Report) is a Government Services stock that has performed well in the past year and has potential to sustain the momentum, going forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s check out what makes Booz Allen an attractive pick.
Share Price Performance
A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Booz Allen’s shares have rallied 33.8% compared with the industry’s growth of 15.1%.
Solid Rank & VGM Score
Booz Allen has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions
Three estimates for fiscal 2020 moved north in the past 60 days versus one downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2020 inched up 0.6%.
Positive Earnings Surprise History
Booz Allen has an impressive earnings surprise history. The company outpaced the consensus mark in all the trailing four quarters, delivering a positive earnings surprise of 10.3%, on average.
Strong Growth Prospects
The Zacks Consensus Estimate for fiscal 2020 earnings is currently pegged at $3.15, indicating year-over-year growth of 14.1%. Moreover, earnings are expected to register 12.6% rise in fiscal 2021. The stock has long-term expected earnings per share (EPS) growth rate of 13%.
Growth Factors
Booz Allen is currently in the pay-off period for Vision 2020, a strategy aimed at achieving sustainable long-term growth. Through the implementation of Vision 2020, the company has moved closer to clients’ core missions, expanded and diversified its talent base, and improved employee experience. It has increased innovation and technical capability, and expanded its portfolio of businesses, making a successful reentry into the global commercial market.
Booz Allen Hamilton Holding Corporation Revenue (TTM)
Booz Allen Hamilton Holding Corporation revenue-ttm | Booz Allen Hamilton Holding Corporation Quote
The company is well placed to achieve its targeted 66% growth in adjusted EPS over the three-year period from fiscal year 2018 to 2021 on the back of strong revenue growth and margin improvement.The top line continues to grow, driven by strong demand for its services and solutions and increase in headcount. Strong margins continue to benefit from robust contract performance, efficient business management, and an ongoing shift toward higher margin, technically focused work.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Business Services sector are Interpublic (IPG - Free Report) , Omnicom (OMC - Free Report) and Genpact (G - Free Report) , each carrying a Zacks Rank #2.
Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Genpact is 4.5%, 5.6% and 14%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>