Over the past six months, Booz Allen Hamilton’s shares (currently trading at $123.45) have posted a disappointing 17.4% loss while the S&P 500 was flat. This may have investors wondering how to approach the situation.

Following the pullback, is now a good time to buy BAH? Find out in our full research report, it’s free.

Why Is BAH a Good Business?

With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE:BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.

1. Core Business Firing on All Cylinders

Investors interested in Government & Technical Consulting companies should track organic revenue in addition to reported revenue. This metric gives visibility into Booz Allen Hamilton’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.

Over the last two years, Booz Allen Hamilton’s organic revenue averaged 13.2% year-on-year growth. This performance was fantastic and shows it can expand quickly without relying on expensive (and risky) acquisitions.Booz Allen Hamilton Organic Revenue Growth

2. Economies of Scale Give It Negotiating Leverage with Suppliers

With $11.78 billion in revenue over the past 12 months, Booz Allen Hamilton is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions.

3. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Booz Allen Hamilton’s EPS grew at a spectacular 14.5% compounded annual growth rate over the last five years, higher than its 10.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.Booz Allen Hamilton Trailing 12-Month EPS (Non-GAAP)

Final Judgment

These are just a few reasons why we think Booz Allen Hamilton is a great business. After the recent drawdown, the stock trades at 18× forward P/E (or $123.45 per share). Is now a good time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More Than Booz Allen Hamilton

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

Story Continues

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

View Comments