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6 Reasons to Bet on Booz Allen Hamilton (BAH) Stock Now

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A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.

Booz Allen Hamilton Holding Corporation (BAH - Free Report) is a Government Services stock that has performed well in the past year and has the 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.

What Makes Booz Allen an Attractive Pick?

An Outperformer: 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 19.9% compared with the industry’s 10.5% rise.

Solid Rank & VGM Score: Booz Allen has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of A. 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: One estimate for fiscal 2019 moved north in the past 60 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2019 inched up 0.4%.

Positive Earnings Surprise History: Booz Allen has an impressive earnings surprise history. The company outpaced the consensus mark in all of the trailing four quarters, delivering a positive average earnings surprise of 16.2%.

Strong Growth Prospects:The Zacks Consensus Estimate for fiscal 2019 earnings is currently pegged at $2.65, reflecting year-over-year growth of 31.8%. Moreover, earnings are expected to register 9.4% rise in fiscal 2020. The stock has long-term expected earnings per share (EPS) growth rate of 14.4%.

Growth Factors:  Booz Allen is currently executing Vision 2020, a strategy focused on getting closer to clients’ core missions, increasing technical content of work, attracting and retaining talent from diverse areas of expertise, increasing innovation, creating a wide network of external partners and alliances as well as expanding into commercial and international businesses.

The company has started seeing higher backlog growth, a shift in talent to more technical expertise and strong performance in the global commercial market.

Booz Allen has created diverse business models and sales channels to increase client acquisition. The company diversified itself in the talent market to ensure attraction and retention of quality talent from various disciplines. These moves have enabled it to significantly expand offerings.

Increased focus on innovation areas such as machine intelligence and directed energy are helping the company receive contracts for highly technical and mission-critical work.

Other Stocks to Consider

A few other top-ranked stocks in the Zacks Business Services sector are Waste Connections (WCN - Free Report) , Advanced Disposal Services and Republic Services (RSG - Free Report) . While Waste Connections sports a Zacks Rank #1, Advanced Disposal Services and Republic Services carry a Zacks Rank #2 (Buy).

Long-term expected EPS (three to five years) growth rate for Waste Connections, Advanced Disposal Services and Republic Services is 11.7%, 13.3% and 10.7%, respectively.

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