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6 Reasons to Bet on Booz Allen Hamilton (BAH) Stock Now

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A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.

Booz Allen Hamilton Holding Corporation (BAH - Free Report) is a Government Services stock that has performed well in the past year and has the potential to sustain the momentum, going forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes Booz Allen an Attractive Pick?

An Outperformer: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Booz Allen’s shares have rallied 60.7% compared with the industry’s growth of 41.7%.

Solid Rank & VGM Score: Booz Allen has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Six estimates for fiscal 2020 moved north in the past 30 days versus no downward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2020 inched up 1.6%.

Positive Earnings Surprise History: Booz Allen has an impressive earnings surprise history. The company outpaced the consensus mark in all of the trailing four quarters, delivering a positive average earnings surprise of 15%.

Strong Growth Prospects: The Zacks Consensus Estimate for fiscal 2020 earnings is currently pegged at $3.12, indicating year-over-year growth of 13%. Moreover, earnings are expected to register 12.1% rise in fiscal 2021. The stock has long-term expected earnings per share (EPS) growth rate of 13%.

Growth Factors: Booz Allen is currently in the process of implementing Vision 2020, a strategy aimed at countering competition and achieving sustainable long-term growth. The strategy focuses on getting closer to clients’ core missions, increasing technical content of work, attracting and retaining talent from diverse areas of expertise, increasing innovation, creating a wide network of external partners and alliances, and expanding into commercial and international business.

Through the implementation of Vision 2020, Booz Allen has significantly seen higher backlog growth, a shift in talent to more technical expertise, strong performance in the global commercial market as well as disciplined acquisition.

Booz Allen Hamilton Holding Corporation Revenue (Quarterly)

The company’s top line continues to grow, driven by strong demand for its services and solutions and increase in headcount.Its strong margins continue to benefit from robust contract performance, efficient business management, and an ongoing shift toward higher margin, technically focused work.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Global Payments (GPN - Free Report) , Mastercard (MA - Free Report) and Cardtronics . While Global Payments and Cardtronics sport a Zacks Rank #1, Mastercard carries a Zacks Rank #2.  

Long-term expected EPS (three to five years) growth rate for Global Payments, Mastercard and Cardtronics is 17%, 15.9% and 4%, respectively.

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