Company Performance - Booz Allen Hamilton (BAH) closed at $108.07, with a daily increase of +1.29%, underperforming compared to the S&P 500's gain of 9.52% [1] - Over the past month, BAH shares have decreased by 3.04%, which is less severe than the Business Services sector's decline of 12.29% and the S&P 500's drop of 13.47% [2] Upcoming Earnings - Analysts expect Booz Allen Hamilton to report earnings of $1.59 per share, reflecting a year-over-year growth of 19.55% [3] - The consensus revenue estimate is $3.02 billion, indicating an 8.94% increase from the same quarter last year [3] Analyst Estimates - Recent changes in analyst estimates suggest a positive outlook for Booz Allen Hamilton's business operations and profit generation capabilities [4] - The Zacks Rank system, which evaluates these estimate changes, currently assigns BAH a rank of 3 (Hold) [6] Valuation Metrics - Booz Allen Hamilton has a Forward P/E ratio of 15.41, which is lower than the industry average of 19.49, suggesting it is trading at a discount [7] - The company has a PEG ratio of 1.1, compared to the Consulting Services industry's average PEG ratio of 1.29 [8] Industry Ranking - The Consulting Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 32, placing it in the top 13% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - Booz Allen Hamilton (BAH) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance Indicators - Booz Allen is projected to earn $6.33 per share for the fiscal year ending March 2025, reflecting a year-over-year increase of 15.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Booz Allen has risen by 0.1%, indicating a positive trend in earnings expectations [8]. Zacks Rating System Overview - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Booz Allen to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Company Overview - Booz Allen Hamilton (BAH) shares increased by 5.1% to $112.83 in the last trading session, with a higher-than-average trading volume [1] - The stock has gained 1.5% over the past four weeks, indicating a positive trend [1] - The company is recognized for its strong reputation, recurring government contracts, focus on innovation, and commitment to shareholder returns, which attract investors [1] Earnings Expectations - Booz Allen is expected to report quarterly earnings of $1.59 per share, reflecting a year-over-year increase of 19.6% [2] - Revenue projections stand at $3.02 billion, marking an 8.9% rise compared to the same quarter last year [2] - The consensus EPS estimate for Booz Allen has remained unchanged over the last 30 days, suggesting stability in earnings expectations [3] Market Position - Booz Allen currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] - The company operates within the Zacks Consulting Services industry, which includes other firms like Stantec (STN) [3] - Stantec's consensus EPS estimate is $0.78, showing a year-over-year change of 16.4%, and it holds a Zacks Rank of 1 (Strong Buy) [4]

Core Insights - Booz Allen Hamilton Holding Corporation (BAH) reported strong third-quarter fiscal 2025 results, with adjusted earnings per share of $1.55, exceeding the Zacks Consensus Estimate by 4.7% and increasing 10% year-over-year. Revenues reached $2.9 billion, surpassing the consensus estimate by 2.7% and growing 13.5% year-over-year [1] Financial Performance - The company has shown significant operational efficiency improvements, with adjusted operating income rising 18.4% year-over-year in fiscal 2024 and an operating income margin expansion of approximately 30 basis points [2] - Booz Allen returned $209.1 million, $235.7 million, and $253.4 million through share repurchases in fiscals 2022, 2023, and 2024, respectively, alongside dividend payments totaling $418.9 million, $223.9 million, and $404.1 million over the same period [4] Market Position and Strategy - Booz Allen is well-positioned in the cybersecurity and AI sectors, capitalizing on the growing demand for secure digital solutions across industries, which enhances its competitive edge and broadens its client base [3] - The company has invested in digital transformation initiatives and data-driven solutions to improve client offerings and streamline internal operations [2] Challenges and Competition - Rising operating expenses are a concern, with increases of 9.5% in fiscal 2024, 14.8% in fiscal 2023, and 8.1% in fiscal 2022, which may impact profitability [5] - The consulting and government services sectors are highly competitive, requiring Booz Allen to continuously innovate and maintain cost efficiency to secure government contracts and private sector opportunities [6] - The need for investment in technology and talent to stay competitive strains resources, complicating the balance between growth and profitability [7]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging opportunities [1] - The service offers a Free Two-Week Trial for potential investors to explore top ideas within exclusive income-focused portfolios [1] Group 2 - There is no current stock, option, or similar derivative position in any of the companies mentioned, but a beneficial long position may be initiated in the near future [2] - The article expresses personal opinions and is not compensated for the content, indicating an independent analysis [2] Group 3 - The article is intended for informational purposes and does not constitute financial advice, encouraging readers to conduct their own due diligence [3] - Past performance is not indicative of future results, and no specific investment recommendations are provided [4]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but these stocks also carry higher risks and volatility [1] Group 1: Company Overview - Booz Allen Hamilton (BAH) is highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 12.9%, with projected EPS growth of 15% this year, surpassing the industry average of 9.8% [4] Group 2: Financial Metrics - Booz Allen's year-over-year cash flow growth is reported at 14.6%, exceeding the industry average of 9.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years stands at 13.6%, compared to the industry average of 8.6% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Booz Allen have been revised upward, with a 1.2% increase in the Zacks Consensus Estimate over the past month [7] - The combination of positive earnings estimate revisions and a Growth Score of A positions Booz Allen favorably for potential outperformance [9]

Core Viewpoint - Booz Allen Hamilton (BAH) has experienced a significant downtrend, with a 17% decline in stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Stock Performance and Technical Indicators - BAH's stock has faced heavy selling pressure, leading to an RSI reading of 24.11, indicating it is oversold and may soon experience a trend reversal [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify oversold conditions when the reading falls below 30, suggesting potential entry opportunities for investors [2][3]. Group 2: Earnings Estimates and Analyst Consensus - There is a strong consensus among sell-side analysts to raise earnings estimates for BAH, resulting in a 1.2% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [6]. - BAH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [7].

Core Insights - Booz Allen Hamilton Holding Corp. (BAH) reported strong third-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][2] Financial Performance - Adjusted earnings per share were $1.55, surpassing the Zacks Consensus Estimate by 4.7% and increasing 10% year-over-year [2] - Revenues reached $2.9 billion, beating the consensus estimate by 2.7% and showing a year-over-year growth of 13.5% [2] - Revenues, excluding billable expenses, amounted to $2 billion, reflecting an 11.8% increase year-over-year [2] Backlog and Orders - Total backlog increased by 14.8% year-over-year to $39.4 billion, close to the estimate of $39.5 billion [4] - Funded backlog was $5.3 billion, a 1.6% increase, while unfunded backlog rose to $9.3 billion, also up by 1.6% [4] Operational Metrics - Priced options rose by 24.5% to $24.7 billion, exceeding expectations [5] - The book-to-bill ratio was 0.37, down from 0.72 in the previous year [5] - Headcount increased by 6.2% year-over-year to 35,800 [5] Profitability - Adjusted EBITDA was $331.7 million, a 14.1% increase from the previous year, surpassing projections [6] - Adjusted EBITDA margin on revenues was 11.4%, up 10 basis points year-over-year [6] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $453.5 million, down from $558.7 million in the previous quarter [7] - Long-term debt remained flat at $3.3 billion [7] - Generated $150.8 million in net cash from operating activities, with capital expenditure of $17.2 million and free cash flow of $133.6 million [9] Future Outlook - For fiscal 2025, BAH anticipates revenue growth of 12-13% and adjusted EPS guidance of $6.25-$6.4 [10] - Adjusted EBITDA is expected to be between $1.31 billion and $1.33 billion, with an anticipated EBITDA margin of approximately 11% [10] - Projected net cash from operating activities is between $950 million and $1.025 billion, with free cash flow expected to be between $850 million and $925 million [10]

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, it's pretty easy to find cutting-edge growth sto ...

For the quarter ended December 2024, Booz Allen Hamilton (BAH) reported revenue of $2.92 billion, up 13.5% over the same period last year. EPS came in at $1.55, compared to $1.41 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.84 billion, representing a surprise of +2.71%. The company delivered an EPS surprise of +4.73%, with the consensus EPS estimate being $1.48.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...