Shares of Booz Allen Hamilton Holding Corporation (BAH Quick QuoteBAH - Free Report) have gained 25.4% in the past year compared with 14.6% rise of the industry it belongs to.

Image Source: Zacks Investment Research

The uptick was primarily driven by Vision 2020, differentiated business & large addressable market.

Reasons for Upside

Booz Allen Hamilton’s strategic development of its solutions business allows it to create differentiated business models and sales channels, increase client acquisition and enhance future revenue opportunities. BAH also differentiated itself from the talent market to ensure attraction and retention of quality talent from diverse disciplines.

These initiatives increased BAH’s ability to bring a variety of offerings through which it has been winning highly technical, mission-critical work for its federal government business and ensure long-term sustainable growth.

Booz Allen has a large addressable market as it serves the government, one of the world’s largest consumers of technology and management consulting services. Also, the agencies of the U.S. intelligence community offer an additional market. Further, the company has a lot of opportunities in global commercial markets where it has relatively low penetration.

Vision 2020, Booz Allen’s transformation strategy aimed to create sustainable expansion, has been fetching significant headcount and backlog growth.  Its implementation has accelerated BAH’s organic revenue growth and strengthened its profitability position.

Favorable Estimate Revision  

Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has moved up 2.5% to $4.47 per share in the past 60 days.

Zacks Rank and Other Stocks to Consider

Booz Allen currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the broader Zacks Business Services sector can also consider stocks like Automatic Data Processing, Inc. (ADP Quick QuoteADP - Free Report) and Cross Country Healthcare, Inc. (CCRN Quick QuoteCCRN - Free Report) .

Automatic Data Processing carries a Zacks Rank #2 (Buy) at present. ADP has a long-term earnings growth expectation of 12%.

ADP delivered a trailing four-quarter earnings surprise of 3.5%, on average.

Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.

CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.