Back to top

Image: Bigstock

Are Business Services Stocks Lagging Booz Allen Hamilton (BAH) This Year?

Read MoreHide Full Article

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? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Booz Allen Hamilton is a member of our Business Services group, which includes 314 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Booz Allen Hamilton is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BAH's full-year earnings has moved 4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that BAH has returned about 13.5% since the start of the calendar year. Meanwhile, stocks in the Business Services group have gained about 5% on average. This means that Booz Allen Hamilton is performing better than its sector in terms of year-to-date returns.

One other Business Services stock that has outperformed the sector so far this year is Fiserv (FI - Free Report) . The stock is up 17.4% year-to-date.

Over the past three months, Fiserv's consensus EPS estimate for the current year has increased 1.3%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Booz Allen Hamilton belongs to the Government Services industry, which includes 3 individual stocks and currently sits at #2 in the Zacks Industry Rank. Stocks in this group have gained about 9% so far this year, so BAH is performing better this group in terms of year-to-date returns.

On the other hand, Fiserv belongs to the Financial Transaction Services industry. This 39-stock industry is currently ranked #85. The industry has moved +5.8% year to date.

Booz Allen Hamilton and Fiserv could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Booz Allen Hamilton Holding Corporation (BAH) - free report >>

Fiserv, Inc. (FI) - free report >>

Published in