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Here's Why Booz Allen (BAH) Stock is Up 24.3% Year to Date
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Shares of Booz Allen Hamilton Holding Corporation (BAH - Free Report) have gained 24.3% so far this year, outperforming 11.9% growth of the industry it belongs to.
Let’s delve into factors that have contributed to the company’s price performance.
Consecutive Earnings & Revenue Beats
Booz Allen came up with better-than-expected earnings and revenue performance in five of the past six quarters. While the company’s bottom line benefited from top-line growth, strong contract-level performance and operational management, revenues were aided by sustained demand for the company’s services and solutions, and rise in headcount to meet that demand.
Vision 2020 Bodes Well
Vision 2020, Booz Allen’s transformation strategy aimed at creating sustainable expansion, has been recording significant headcount and backlog growth. The strategy focuses 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, and expansion into commercial and international business. Its implementation has accelerated the company’s organic revenue growth and strengthened its profitability position. Notably, the company’s adjusted EPS of $1.03 jumped 27.2% year over year in the last-reported quarter. Revenues, backlog and headcount rose 11%, 7.4% and 2.4%, respectively.
Innovative Approaches
Booz Allen is focusing on areas such as artificial intelligence, advanced engineering, directed energy and modern digital platforms to drive innovation. It is developing mechanics and infrastructure for new and disruptive business models to enhance service quality and client satisfaction. Transformative solutions created by such efforts are expected to significantly enhance future revenue opportunities of the company.
Differentiated Business Model
Booz Allen has developed its solutions business in a way that it creates differentiated business models and sales channels, increases client acquisition and enhances revenue opportunities. The company also differentiates itself in the talent market so as to attract and retain quality talent from diverse disciplines. These initiatives have enhanced its ability to bring a variety of offerings through which it has been winning highly technical, mission-critical work for its federal-government business. All these ensure long-term growth.
Zacks Rank and Stocks to Consider
Booz Allen Hamilton currently carries a Zacks Rank #3 (Hold).
The long-term expected earnings per share (three to five years) growth rate for Heidrick & Struggles International, Automatic Data Processing and Insperity is 10%, 12% and 15%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Here's Why Booz Allen (BAH) Stock is Up 24.3% Year to Date
Shares of Booz Allen Hamilton Holding Corporation (BAH - Free Report) have gained 24.3% so far this year, outperforming 11.9% growth of the industry it belongs to.
Let’s delve into factors that have contributed to the company’s price performance.
Consecutive Earnings & Revenue Beats
Booz Allen came up with better-than-expected earnings and revenue performance in five of the past six quarters. While the company’s bottom line benefited from top-line growth, strong contract-level performance and operational management, revenues were aided by sustained demand for the company’s services and solutions, and rise in headcount to meet that demand.
Vision 2020 Bodes Well
Vision 2020, Booz Allen’s transformation strategy aimed at creating sustainable expansion, has been recording significant headcount and backlog growth. The strategy focuses 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, and expansion into commercial and international business. Its implementation has accelerated the company’s organic revenue growth and strengthened its profitability position. Notably, the company’s adjusted EPS of $1.03 jumped 27.2% year over year in the last-reported quarter. Revenues, backlog and headcount rose 11%, 7.4% and 2.4%, respectively.
Innovative Approaches
Booz Allen is focusing on areas such as artificial intelligence, advanced engineering, directed energy and modern digital platforms to drive innovation. It is developing mechanics and infrastructure for new and disruptive business models to enhance service quality and client satisfaction. Transformative solutions created by such efforts are expected to significantly enhance future revenue opportunities of the company.
Differentiated Business Model
Booz Allen has developed its solutions business in a way that it creates differentiated business models and sales channels, increases client acquisition and enhances revenue opportunities. The company also differentiates itself in the talent market so as to attract and retain quality talent from diverse disciplines. These initiatives have enhanced its ability to bring a variety of offerings through which it has been winning highly technical, mission-critical work for its federal-government business. All these ensure long-term growth.
Zacks Rank and Stocks to Consider
Booz Allen Hamilton currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Heidrick & Struggles International (HSII - Free Report) , Automatic Data Processing (ADP - Free Report) and Insperity (NSP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term expected earnings per share (three to five years) growth rate for Heidrick & Struggles International, Automatic Data Processing and Insperity is 10%, 12% and 15%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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