Industry Overview - The consulting, contracting, and IT services sector faced significant challenges in 2025 due to constrained budgets, shifts in government policies, and the disruptive impact of AI, leading to widespread pessimism among investors [1]. Company Insights - Many firms within the consulting and IT services space have seen a decline in investor interest as a result of the aforementioned challenges, indicating a potential shift in market dynamics [1].

Core Viewpoint - Booz Allen Hamilton Holding Corporation will host a conference call to discuss its financial results for the Third Quarter of Fiscal 2026, which ends on December 31, 2025 [1] Group 1: Conference Call Details - The conference call is scheduled for 8 a.m. EST on January 23, 2026 [1] - Analysts and institutional investors can register online at investors.boozallen.com, with a request to register at least 15 minutes before the call [2] - The call will be webcast live to the public, and a replay will be available starting at 11 a.m. EST on the same day for 30 days [3] Group 2: Company Overview - Booz Allen Hamilton is an advanced technology company focused on delivering outcomes for defense, civil, and national security priorities [4] - The company employs approximately 32,500 people globally as of September 30, 2025 [5] - Booz Allen reported revenue of $12.0 billion for the 12 months ending March 31, 2025 [5]

Core Insights - Booz Allen Hamilton (BAH) is a management and information technology consulting firm competing with major players like Accenture and Deloitte [1] - Jefferies has set a price target of $95 for BAH, indicating a potential upside of 9.38% from its current trading price of $86.85 [1][6] Stock Performance - BAH's stock price recently closed at $85.40, reflecting a 7.04% decline from the previous session, which is more significant than the broader market's performance [2] - Despite the recent drop, BAH's stock has risen by 12.5% over the past month, outperforming the Business Services sector's gain of 4.21% and the S&P 500's gain of 1.31% [3] Upcoming Earnings Report - BAH is expected to report an EPS of $1.25, representing a 19.35% decline year-over-year, with projected revenue of $2.73 billion, reflecting a 6.55% decrease [4][6] - For the full year, earnings are estimated at $5.67 per share, with total revenue of $11.38 billion [4] Current Stock Metrics - As of the latest trading session, BAH's stock is priced at $86.81, showing a slight increase of 0.30% [5] - The stock has fluctuated between $86.13 and $88.05 during the day, with a market capitalization of approximately $10.85 billion [5]

Group 1 - Booz Allen's CFO, Matt Calderone, announced his resignation effective February 1 for another opportunity outside the industry [3] - Kristine Martin Anderson will serve as interim CFO until a permanent replacement is appointed [3] - Calderone has had a long career at Booz Allen, spanning over two decades, with a brief period at Boston Consulting Group from 2007 to 2010 [4] Group 2 - Calderone played a significant role in Booz Allen's financial and strategic transformation, including the development of the "VoLT" growth strategy [6] - He led the corporate development team, overseeing over $1.5 billion in mergers and acquisitions, equity investments, divestitures, and joint ventures [7] - Calderone previously designed and executed Booz Allen's Vision 2020 growth strategy and led a restructuring in 2013 [7] Group 3 - S&P Global appointed Calderone as CFO of its soon-to-be-separated mobility business, effective March 1 [8] - He will report to Bill Eager, president of S&P Global Mobility, as the company prepares for a pivotal transition [8]

Core Viewpoint - Booz Allen Hamilton's shares fell 6.7% following the announcement of CFO Matthew A. Calderone's resignation, raising questions about the company's stability and potential investment opportunities [1][2]. Company Overview - Booz Allen Hamilton's current market capitalization is approximately $11 billion, with shares trading at $85.23 after a decline from all-time highs [3][5]. - The company has a gross margin of 21% and a dividend yield of 2.39% [3]. Executive Departure - CFO Matthew A. Calderone will leave Booz Allen on February 1, 2026, to take a new position at S&P Global Mobility, which is set to be spun off from S&P Global [3][4]. - COO Kristine Martin Anderson will assume Calderone's responsibilities on an interim basis [3]. Market Context - The departure of Calderone is perceived as routine, given S&P Global's larger market capitalization of $152 billion compared to Booz Allen's [5]. - The S&P Mobility unit generated $1.6 billion in revenue in 2024, reflecting an 8% growth, indicating potential for high valuation upon its spin-off [6]. Financial Performance - Booz Allen has experienced a 52% decline from its all-time highs, leading to a current trading multiple of 13 times trailing earnings [10]. - The company has faced challenges in its civil administration consulting business due to cost-cutting measures, but two-thirds of its operations are focused on defense and technology sectors, which remain robust [9]. Investment Considerations - The recent sell-off may present a buying opportunity for value investors, as the company appears undervalued despite current market concerns [8][10].

Core Viewpoint - The report summarizes significant changes in stock ratings from various investment banks, highlighting potential investment opportunities and market impacts. Upgraded Ratings - Jefferies upgraded Lululemon (LULU) from "Underperform" to "Hold," raising the target price from $120 to $170, citing the CEO's impending departure as a "major positive" [5] - UBS upgraded American Airlines (AAL) from "Neutral" to "Buy," increasing the target price from $14 to $20, noting that the market has not fully recognized the potential for significant profit increases as corporate client revenue recovers [5] - JPMorgan upgraded Citigroup (C) from "Neutral" to "Overweight," raising the target price from $107 to $124, believing that a stable economic environment in 2026 will benefit Citigroup more than its peers [5] - Guggenheim upgraded Bristol-Myers Squibb (BMY) from "Neutral" to "Buy," setting a target price of $62 for 2026, indicating attractive risk-reward dynamics [5] - Deutsche Bank upgraded Allegiant Air (ALGT) from "Hold" to "Buy," with a target price of $105, highlighting a balanced supply-demand environment in the U.S. domestic airline market by 2026 [5] Downgraded Ratings - JPMorgan downgraded Roblox (RBLX) from "Overweight" to "Neutral," lowering the target price from $145 to $100, citing pressures on user engagement and profit margins [10] - Baird downgraded PayPal (PYPL) from "Outperform" to "Neutral," reducing the target price from $83 to $66, due to volatility in transaction volumes and uncertainties in platform upgrades [10] - Stifel downgraded RH (RH) from "Buy" to "Hold," cutting the target price from $320 to $165, reflecting a second revenue guidance cut for fiscal year 2025 [10] - Northland downgraded Ciena (CIEN) from "Outperform" to "Market Perform," maintaining a target price of $190, stating that positive factors are already reflected in the current stock price [10] - Cowen downgraded Veeva Systems (VEEV) from "Overweight" to "Market Perform," indicating potential order losses due to competition from Salesforce (CRM) [10] Initiated Coverage - Citigroup initiated coverage on Boeing (BA) with a "Buy" rating and a target price of $265, describing it as an "attractive large-cap transformation stock" [11] - Jefferies initiated coverage on Moderna (MRNA) with a "Hold" rating and a target price of $30, expecting growth in vaccine sales but requiring more performance increments to meet guidance [11] - UBS initiated coverage on AppFolio (APPF) with a "Buy" rating and a target price of $285, noting no signs of spending slowdown or new competitive pressures [11] - TD Cowen initiated coverage on Tyler Technologies (TYL) with a "Buy" rating and a target price of $650, projecting a 20% sustainable SaaS growth rate due to cloud migration projects [11] - Jefferies initiated coverage on Badger Meter (BMI) with a "Buy" rating and a target price of $220, suggesting recent stock pullbacks present an attractive entry point [11]

Core Insights - Booz Allen Hamilton Holding Corporation (BAH) shares have increased by 4.6% over the past month, significantly outperforming the industry, which saw a decline of 0.4% [1][8] - The company has a Growth Score of A, indicating strong financial metrics that reflect the quality and sustainability of its growth [1] Factors Supporting Growth - BAH's strategy focuses on potential growth areas, emphasizing a commercially oriented, outcome-based approach while restructuring to achieve $150 million in annual cost reductions [2] - The company aims to reduce costs in stable sectors and invest in high-potential areas such as cybersecurity, AI, and warfighting technology, driven by increasing cyber threats and global AI adoption [2] Financial Position - As of September 30, 2025, BAH reported cash and equivalents of $816 million and current debt of $83 million, indicating a strong balance sheet with ample cash available for growth investments and shareholder distributions [3] - The company's liquidity is robust, with a current ratio of 1.76, surpassing the industry average of 1.19, suggesting a solid ability to meet short-term obligations [4] Risk Consideration - BAH primarily provides consulting services to the U.S. government, resulting in stable revenues but limiting rapid growth potential, which may not appeal to momentum investors [5] Comparative Analysis - BAH currently holds a Zacks Rank of 3 (Hold), while Genpact and Palantir Technologies are better-ranked stocks in the broader Business Services sector, with Zacks Ranks of 2 (Buy) [6][7]

Core Points - S&P Dow Jones Indices will implement changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective December 22, 2025, to enhance market capitalization representation [1][2] - The adjustments involve additions and deletions of various companies across the indices, reflecting their current market status [2] S&P 500 Changes - Additions include CRH (Materials), Carvana (Consumer Discretionary), and Comfort Systems USA (Industrials) [2] - Deletions include LKQ (Consumer Discretionary), Solstice Advanced Materials (Materials), and Mohawk Industries (Consumer Discretionary) [2] S&P MidCap 400 Changes - New additions consist of UL Solutions (Industrials), Pinterest (Communication Services), and Booz Allen Hamilton Holding (Industrials) [2] - Companies being removed include Comfort Systems USA (Industrials), Under Armour A and C (Consumer Discretionary), and Power Integrations (Information Technology) [2] S&P SmallCap 600 Changes - Additions feature Primoris Services (Industrials), Casella Waste Systems (Industrials), and Indivior (Health Care) [2] - Deletions include SPX Technologies (Industrials), Dycom Industries (Industrials), and Borgwarner (Consumer Discretionary) [2][3]

Core Viewpoint - Booz Allen Hamilton Holding Corporation (NYSE:BAH) has faced significant stock price decline, attributed to external market factors, particularly related to DOGE, but is considered undervalued at current levels [1]. Group 1: Company Overview - Booz Allen Hamilton develops technology solutions leveraging AI, cyber, and quantum capabilities, offering services such as AI-driven applications, cyber defense, cloud infrastructure, data fusion, and quantum information services [1]. Group 2: Stock Performance - The stock of Booz Allen Hamilton has declined nearly 25% since Jim Cramer's comments regarding its performance during a lightning round segment [1]. - Cramer indicated that the stock is currently selling at an "incredibly low multiple," suggesting a potential buying opportunity [1]. Group 3: Market Context - There is a belief that while Booz Allen Hamilton has potential, other AI stocks may offer greater upside potential with less downside risk [2]. - The company may benefit from trends such as Trump-era tariffs and the onshoring movement, which could enhance its investment appeal [2].

Core Insights - The American Century U.S. Quality Growth ETF (QGRO) has made significant adjustments to its holdings, reflecting the flexibility of ETF managers in response to market movements [1][3][6] Fund Overview - QGRO was launched in September 2018 and charges 29 basis points for investing in U.S. firms with high growth potential and strong fundamentals [2] - The fund tracks the American Century U.S. Quality Growth Index, which screens for factors like income and quality using metrics such as cash flow and profitability [2] Recent Changes in Holdings - Notable changes in QGRO's portfolio include the dropping of at least two stocks and the addition of two new stocks, along with adjustments to the weights of six existing stocks [3] - Major tech companies such as Alphabet (GOOGL), Meta Platforms (META), and Amazon (AMZN) saw their weights decrease by 1.22%, 1.32%, and 1.74% respectively between November 21 and 24 [3] - Conversely, Amphenol Corporation (APH), Ralph Lauren Corporation (RL), and Expedia Group, Inc. (EXPE) experienced weight increases of 3.53%, 2.1%, and 1.33% respectively [4] Specific Stock Adjustments - The two stocks that were dropped from QGRO included Itron Inc. (ITRI) and Booz Allen Hamilton Holding Corporation (BAH), which had weights of 0.76% and 0.72% respectively before being removed [5] - The largest additions to the fund were Cardinal Health, Inc. (CAH) and HCA Healthcare, Inc. (HCA), with weights of 1.08% and 1.25% respectively [5] Performance Metrics - QGRO has achieved a year-to-date return of 12.4%, focusing on quality and growth-oriented companies [6] - The recent reduction in weight for three major tech stocks may attract investors looking to diversify into other rising companies [6]