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Is Booz Allen Hamilton (BAH) Outperforming Other Business Services Stocks This Year?

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For those looking to find strong Business Services stocks, it is prudent to search for companies in the group 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 one of 315 individual stocks in the Business Services sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. 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 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).

Within the past quarter, the Zacks Consensus Estimate for BAH's full-year earnings has moved 1.8% higher. 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 16.5% since the start of the calendar year. At the same time, Business Services stocks have gained an average of 6.5%. As we can see, Booz Allen Hamilton is performing better than its sector in the calendar year.

Seagate (STX - Free Report) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.7%.

In Seagate's case, the consensus EPS estimate for the current year increased 325.7% over the past three months. 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 #18 in the Zacks Industry Rank. On average, this group has gained an average of 12.9% so far this year, meaning that BAH is performing better in terms of year-to-date returns.

In contrast, Seagate falls under the Technology Services industry. Currently, this industry has 173 stocks and is ranked #58. Since the beginning of the year, the industry has moved +15.1%.

Going forward, investors interested in Business Services stocks should continue to pay close attention to Booz Allen Hamilton and Seagate as they could maintain their solid performance.


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