Here's Why You Should Add Booz Allen (BAH) in Your Portfolio
Artificial intelligence, advanced engineering, directed energy and modern digital platforms boost Booz Allen (BAH) stock.
Booz Allen Hamilton Holding Corporation BAH performed decently in the past three months and has the potential to sustain the momentum. If you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 4.4% in the past three months compared with 2.1% rise of the industry it belongs to.
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Solid Rank & VGM Score: Booz Allen currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. 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. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Two estimates for 2022 have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2022 earnings has moved up marginally in the past 60 days.
Positive Earnings Surprise History: Booz Allen has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 12.7%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $4.25, which reflects year-over-year growth of 9%. Earnings are expected to increase 8.7% in 2023. The company’s long-term expected earnings per share (EPS) growth rate is at 8.3%.
Driving Factors: Booz Allen is focused on artificial intelligence, advanced engineering, directed energy and modern digital platforms to drive innovation. It is developing mechanics and infrastructure for new and disruptive business models to enhance service quality and client satisfaction. Transformative solutions through such efforts are expected to significantly boost revenue opportunities of the company in the future.
BAH has a large addressable market as it serves the government, which is one of the world’s largest consumers of technology and management consulting services. Also, the agencies of the U.S. intelligence community offer an additional market. Further, the company has a lot of opportunities in global commercial markets where it has relatively low penetration.
Other Stocks to Consider
Avis Budget has an expected revenue growth rate of around 69.8% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 485.1% so far this year. It has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.
Cross Country Healthcare has an expected revenue growth rate of around 94% for the current fiscal year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 206.8% so far this year. It has a long-term earnings growth of 21.5%. CCRN sport a Zacks #1 Rank.
CRA International has an expected revenue growth rate of around 12% for the current year. It has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 87.3% so far this year. It has a long-term earnings growth of 15.5%. CRAI carries a Zacks #2 (Buy) Rank.
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Charles River Associates (CRAI): Free Stock Analysis Report
Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN): Free Stock Analysis Report
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