Booz Allen Hamilton Holding Corporation (BAH Quick QuoteBAH – Free Report) has had an impressive run on the bourse over the past six months. The stock gained 35.2%, outperforming 25% and 9.3% growth of the industry it belongs to and 9.3% growth of the Zacks S&P 500 composite.
The company has an expected long-term (three to five years) EPS growth rate of 12%. Its earnings for fiscal 2024 and 2025 are anticipated to grow 10.1% and 9.9%, respectively, year over year.
Booz Allen Hamilton Holding Corporation Price
Driving Factors
Vision 2020 was Booz Allen’s transformation strategy for creating sustainable expansion. The strategy focused on getting closer to clients’ core missions, increasing the 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. Its implementation has accelerated the company’s organic revenue growth, strengthened its profitability position and fetched significant headcount and backlog growth.
Booz Allen’s next strategy, VoLT, focuses on integrating velocity, leadership and technology in the process of transformation. Key focus areas on the velocity front are increasing innovation, strengthening market position through mergers, acquisitions and partnerships, and client-centric decision making. The leadership front involves initiatives to promptly utilize leadership in identifying client needs and scaling businesses. On the technology front, the company focuses on developing and expanding next-generation technology and solutions.
Booz Allen 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.