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Reasons Why You Should Hold Booz Allen Stock in Your Portfolio

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Key Takeaways

  • BAH shares rose 4.6% in a month, far outpacing the industry's 0.4% decline.
  • BAH's VoLT Strategy targets cost cuts and growth in cybersecurity, AI and warfighting tech.
  • BAH's strong cash position and higher current ratio support investments and liquidity.

Shares of Booz Allen Hamilton Holding Corporation (BAH - Free Report) have gained 4.6% over the past month against 0.4% decline of the Industry.

The company has a Growth Score of A. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.

Factors That Bode Well

Booz Allen’s vision of doubling down on potential growth areas, working with customers to provide solutions with commercially oriented, outcome-based approach and restructuring the business to reduce $150 million in identified incremental costs on an annualized basis, collectively support its VoLT Strategy. These will help the company reduce cost in stable sectors, such as civil and invest in more promising sectors such as cybersecurity, AI and warfighting tech. Growing cyber-attacks and the global usage of AI are keeping the demand environment strong for BAH.

BAH has a strong balance sheet. Cash and equivalents were $816 million as of Sept. 30, 2025, with current debt of $83 million. Since the company carries a nominal current debt, most of the cash is available for investments in growth initiatives and distribution to shareholders.

The company’s cash reserves contribute to its strong liquidity. At the end of the second quarter of fiscal 2026, it reported a current ratio of 1.76, higher than the industry average of 1.19, which suggests it is well-positioned to meet its short-term obligations.

Key Risk Factor

The company provides consulting services primarily to the U.S. government, leading to stable revenues rather than rapid growth. As a result, the stock may not be ideal for momentum investing, which relies on capitalizing on stocks that exhibit strong upward trends and price surges.

Zacks Rank and Stocks to Consider

Booz Allen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of better-ranked stocksin the broader Zacks Business Services sector are Genpact (G - Free Report)  and Palantir Technologies (PLTR - Free Report) .

Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 9.60%.

Genpact delivered a trailing four-quarter earnings surprise of 5.53% on average.

Palantir Technologies carries a Zacks Rank of 2 at present. PLTR has a long-term earnings growth expectation of 50%.

Palantir beat earnings estimates in the three quarters and matched estimates in one quarter, with an earnings surprise of 16.27% on average.


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Genpact Limited (G) - free report >>

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Palantir Technologies Inc. (PLTR) - free report >>

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