Analysts expect this consulting company to grow by 16.9%, annually, over the next five years.
Booz Allen Hamilton Holding Corporation (BAH)
From Forecasts & Strategies
When it comes to national defense, it’s not all about guns, bombs and planes.
In fact, information and its various uses are an even more powerful tool in a nation’s protective arsenal. Yet information is a job not just for the uniformed military class; it’s also a job for civilian contractors.
Enter Booz Allen Hamilton Holding Corporation (BAH). Now, you may have heard of BAH in a rather infamous way. That’s because the company was the employer of perhaps the most famous intelligence whistleblower in American history, Edward Snowden. Snowden’s access to what he revealed about the National Security Agency (NSA) and its electronic surveillance capabilities were acquired while working at BAH. That shows just how tied in the company is to our intelligence community.
Officially, Booz Allen Hamilton Holding Corp. is a provider of management consulting services to the U.S. government. Its services include technologies such as cloud computing, cyber security consulting and engineering consulting.
These services are in demand, and that can be seen in the company’s earnings performance in recent quarters. At an average annual growth rate of 41% over the past three quarters and a three-year annual earnings per share (EPS) growth rate of 17%, BAH is in the top 12% of all publicly traded firms.
On the share price front, BAH stock is up nearly 48% over the past year, which puts it in the top 7% of all publicly traded companies over the past 52 weeks. In 2019, BAH shares are up more than 30%, but technically speaking the stock is not overextended.
In fact, the recent bullish base pattern here in between $56.50 and just under $59 since late March is setting this one up for a fast-money push higher. The next catalyst to fuel that push will be earnings, which are due out on Tuesday, May 28.
We suspect we are in for more upside heading into that earnings report, and that’s something we want to take advantage of today in our Fast Money Alert portfolio.
So, let’s buy Booz Allen Hamilton Holding Corp. at market, with a protective stop at $47.20.
Mark Skousen, Forecasts & Strategies, www.markskousen.com/, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, April 30, 2019