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Booz Allen (BAH) Soars to a 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Booz Allen Hamilton Holding (BAH - Free Report) ? Shares have been on the move with the stock up 11.6% over the past month. BAH hit a new 52-week high of $44.17 in the previous session. Booz Allen Hamilton has gained 15.5% since the start of the year compared to the 8.5% move for the Business Services sector and the 4.8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 29, 2018, Booz Allen Hamilton reported EPS of $0.52 versus the Zacks Consensus Estimate of $0.45 while it missed the consensus revenue estimate by 2.5%.
Valuation Metrics
While BAH has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Booz Allen Hamilton Holding has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19.6X versus its peer group's average of 14.9X. Additionally, the stock has a PEG ratio of 1.74. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Booz Allen Hamilton Holding Corporation Price and Consensus
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Booz Allen Hamilton Holding currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Booz Allen Hamilton Holding meets the list of requirements. Thus, it seems as though BAH shares could have a bit more room to run in the near term.
How Does Booz Allen Hamilton Holding Stack Up to the Competition?
Shares of Booz Allen Hamilton Holding have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Dun & Bradstreet (DNB - Free Report) , Accenture (ACN - Free Report) , and FleetCor Technologies , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BAH, even beyond its own solid fundamental situation.
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Booz Allen (BAH) Soars to a 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Booz Allen Hamilton Holding (BAH - Free Report) ? Shares have been on the move with the stock up 11.6% over the past month. BAH hit a new 52-week high of $44.17 in the previous session. Booz Allen Hamilton has gained 15.5% since the start of the year compared to the 8.5% move for the Business Services sector and the 4.8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 29, 2018, Booz Allen Hamilton reported EPS of $0.52 versus the Zacks Consensus Estimate of $0.45 while it missed the consensus revenue estimate by 2.5%.
Valuation Metrics
While BAH has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Booz Allen Hamilton Holding has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 19.6X versus its peer group's average of 14.9X. Additionally, the stock has a PEG ratio of 1.74. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Booz Allen Hamilton Holding Corporation Price and Consensus
Booz Allen Hamilton Holding Corporation Price and Consensus | Booz Allen Hamilton Holding Corporation Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Booz Allen Hamilton Holding currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Booz Allen Hamilton Holding meets the list of requirements. Thus, it seems as though BAH shares could have a bit more room to run in the near term.
How Does Booz Allen Hamilton Holding Stack Up to the Competition?
Shares of Booz Allen Hamilton Holding have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Dun & Bradstreet (DNB - Free Report) , Accenture (ACN - Free Report) , and FleetCor Technologies , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BAH, even beyond its own solid fundamental situation.