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Is Booz Allen Hamilton (BAH) Stock Outpacing Its Business Services Peers This Year?

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The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Booz Allen Hamilton (BAH - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

Booz Allen Hamilton is a member of the Business Services sector. This group includes 333 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Booz Allen Hamilton is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BAH's full-year earnings has moved 2.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, BAH has moved about 25.9% on a year-to-date basis. At the same time, Business Services stocks have lost an average of 28%. This means that Booz Allen Hamilton is outperforming the sector as a whole this year.

Another Business Services stock, which has outperformed the sector so far this year, is CBIZ (CBZ - Free Report) . The stock has returned 22.2% year-to-date.

Over the past three months, CBIZ's consensus EPS estimate for the current year has increased 0.5%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Booz Allen Hamilton belongs to the Government Services industry, a group that includes 3 individual companies and currently sits at #40 in the Zacks Industry Rank. On average, this group has gained an average of 12.3% so far this year, meaning that BAH is performing better in terms of year-to-date returns.

In contrast, CBIZ falls under the Consulting Services industry. Currently, this industry has 15 stocks and is ranked #61. Since the beginning of the year, the industry has moved -23.7%.

Investors interested in the Business Services sector may want to keep a close eye on Booz Allen Hamilton and CBIZ as they attempt to continue their solid performance.


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