Back to top

Image: Shutterstock

Reasons Why You Should Hold Booz Allen Stock in Your Portfolio

Read MoreHide Full Article

Key Takeaways

  • BAH shares have risen 12.8% over the past month, handily outperforming the industry's modest 1.1% growth rate.
  • Booz Allen's wide-ranging consulting and technology offerings help secure long-term contracts across sectors.
  • BAH's AI and cybersecurity, including its Thunderdome platform, have expanded market reach and client trust.

Shares of Booz Allen Hamilton Holding Corporation (BAH - Free Report) have had an excellent run recently. The stock has gained 12.8% over the past month, outperforming the industry’s 1.1% growth.

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 for BAH

Booz Allen’s revenue growth is driven by its collective management and technology consulting, analytics, engineering, digital solutions, mission operations and cyber expertise across government and private sectors globally. The sheer breadth of its offerings helps the company secure long-term, recurring contracts, reducing its exposure to market volatility and providing a steady revenue stream.

BAH’s consistent investment in cybersecurity and AI has expanded its market potential, helping it become the largest AI business in the federal government and one of the largest cyber businesses in the world. Thunderdome, with its accelerated threat detection and response time, reduced user complexity. Its sophisticated cyberattack prevention features have earned the company the trust of clients across government and private sectors.

BAH’s cash reserves contribute to its strong liquidity. At the end of the second quarter of fiscal 2026, the company 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

BAH provides its offerings primarily to the U.S. government, leading to stable revenues rather than rapid growth. As a result, investors who prefer stocks with higher volatility and opportunities for rapid price appreciation may not consider the stock 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 stocks of the industry are Information Services Group (III - Free Report)  and Charles River Associates (CRAI - Free Report) .

Information Services holds a Zacks Rank #2 (Buy) at present. III has a long-term earnings growth expectation of 18.5%. The company delivered a trailing four-quarter earnings surprise of 15.9% on average.

Charles River also has a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 16%. CRAI delivered a trailing four-quarter earnings surprise of 15% on average.

Published in