Monthly Archives: August 2021

Booz Allen (BAH) Up on Transformation Moves, Debt Woe Stays

tags:

Booz Allen Hamilton Holding Corporation (BAH Quick QuoteBAH ) is currently benefiting from its transformation and innovation strategies while its balance sheet remains debt-heavy.

The company recently reported first-quarter fiscal 2021 adjusted earnings per share of $1.07 that beat the Zacks Consensus Estimate by 11.5% and increased 15.1% on a year-over-year basis. Total revenues of $2 billion missed the consensus mark by 1.6% but increased 1.7% on a year-over-year basis.

Booz Allen’s shares have declined 5.9% over the past year against 2.3% growth of the industry it belongs to.

Booz Allen Hamilton Holding Corporation Price Booz Allen Hamilton Holding Corporation Price

Booz Allen Hamilton Holding Corporation price | Booz Allen Hamilton Holding Corporation Quote

How is Booz Allen Doing?

Vision 2020, Booz Allen’s transformation strategy aimed at creating sustainable expansion, has been fetching significant headcount and backlog growth. The strategy focuses on getting closer to clients’ core missions, increasing 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 and strengthened its profitability position.

Booz Allen has developed its solutions business in a way that it creates differentiated business models and sales channels, increases client acquisition and enhances future revenue opportunities. The company also differentiates itself in the talent market so as to ensure attraction and retention of quality talent from diverse disciplines. These initiatives bumped up its ability to bring a variety of offerings through which it has been winning highly technical, mission-critical work for its federal government! business. All these ensure long-term sustainable growth for the company.

The company is focusing on areas such as artificial intelligence, advanced engineering, immersive technologies, secure mobility and modern digital platforms to drive innovation. It is developing mechanics and infrastructure for new and disruptive business models to enhance service quality and client satisfaction. Transformative solutions created by such efforts are expected to significantly enhance future revenue opportunities of the company.

Meanwhile, Booz Allen’s cash and cash equivalent balance of $662 million at the end of the first quarter stayed well below the long-term debt of $2.8 billion, underscoring that the company does not have enough cash to meet this debt burden. The cash level can, however, meet the short-term debt of $78 million.

Zacks Rank and Stocks to Consider

Booz Allen currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Cross Country Healthcare (CCRN Quick QuoteCCRN ) , Equifax (EFX Quick QuoteEFX )  and TransUnion (TRU Quick QuoteTRU ) , each carrying a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for Cross Country Healthcare, Equifax and TransUnion is pegged at 9.9%, 15.2% and 22%, respectively.

Stock Market Today (8/26/21): Stocks Retreat From Recent Highs

tags:
t_primary-image-mobile@1/v1630008113/Investing/stock-market-today-082621.jpg” srcset=”https://mediacloud.kiplinger.com/image/private/s–JHaJUqhD–/f_auto,t_primary-image-mobile@1/v1630008113/Investing/stock-market-today-082621.jpg 375w,https://mediacloud.kiplinger.com/image/private/s–JHaJUqhD–/f_auto,t_primary-image-desktop@1/v1630008113/Investing/stock-market-today-082621.jpg 833w,https://mediacloud.kiplinger.com/image/private/s–JHaJUqhD–/f_auto,t_primary-image-mobile@2/v1630008113/Investing/stock-market-today-082621.jpg 750w,https://mediacloud.kiplinger.com/image/private/s–JHaJUqhD–/f_auto,t_primary-image-desktop@2/v1630008113/Investing/stock-market-today-082621.jpg 1666w” sizes=”(max-width: 768px) 375px,(min-width: 768px) 833px,(max-width: 768px) and (min-resolution: 2dppx) 750px,(min-width: 768px) and (min-resolution: 2dppx) 1666px,375px” width=”375″ height=”211″ alt=”Car shifted into reverse”/>

Getty Images

The news wire didn't give Wall Street much to cheer about Thursday, sending the major indexes to modest losses.

Ahead of Friday's Federal Reserve symposium in Jackson Hole, Wyoming, Kansas City Fed President Esther George told CNBC that pulling back on monetary stimulus soon was “appropriate given the progress we've seen.”

That said, it's possible we might not see that particular brand of firework tomorrow.

The Pros' Picks: 5 Stocks to Sell or Avoid

“We doubt he will shed much light on the precise timing of tapering asset purchases given the uncertain impact of the latest COVID wave on the economy,” says Sal Guatieri, senior economist for BMO Capital Markets.

Also of concern: an attack near the Kabul, Afghanistan, airport that killed at least 12 U.S. service members and wounded 15 at last check. And on the economic front, weekly jobless claims edged up by 4,000 filings to 353,000.

The earnings calendar wasn&#x2! 7;t much relief, either.

Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

Dollar Tree (DLTR, -12.1%) dropped after it reported disappointing Q2 revenues and cut full-year profit estimates to below analysts' expectations. Rival Dollar General's (DG, -3.8%) 2021 earnings forecast also came in under the bar. Global design software firm Autodesk (ADSK, -9.4%) provided a similar letdown as its third-quarter profit guidance missed the mark.

Broadly speaking, stocks started relatively flat and crept lower throughout the rest of the day. Real estate was the only sector to finish with gains, and those were marginal.

Penny Stocks: Why You Should Always Stay Away

The Dow Jones Industrial Average (-0.5% to 35,213), S&P 500 (-0.6% to 4,470) and Nasdaq Composite (-0.6% to 14,945) all closed in the red.

Other news in the stock market today:

The small-cap Russell 2000 dropped by 1.1% to 2,213.Salesforce.com(CRM, +2.7%) was one of Thursday's few positive earnings stories. The Slack parent reported adjusted earnings per share of $1.48 on revenues of $6.34 billion, which was higher than the 92 cents per share and $6.24 billion that analysts were anticipating. CRM also offered higher-than-expected current-quarter guidance and boosted its full-year forecast after completing its acquisition of business communication platform Slack in the second quarter. The results prompted Mizuho Americas analysts to lift their 12-month price target on Salesforce by $10 to $300. They also have a Buy rating on the shares.”Looking ahead, we believe CRM is very well-situated to help its vast customer base manage revenue and process optimization via digital transformation,” they wrote in a research note. “CRM remains one of our top picks over the near term.”Pure Storage(PSTG, +13.8%) also turned in a well-received earnings report. In its second quarter, the maker of flash memory-base! d enterpr! ise storage solutions brought in adjusted earnings of 14 cents per share and revenue of $496.8 million. This was more than the 5 cents per share and $469.5 million analysts were expecting. Additionally, subscription revenue jumped 31% year-over-year to $171.9 million. “We see a favorable risk/reward equation for Pure Storage, especially given the still solid growth prospects in the business, market share gains and rising mix of subscription sales,” William Blair analysts said after PSTG's results. They have an Outperform (Buy) rating on the stock.U.S. crude futuresgave back 1.4% to finish at $67.42 per barrel.Gold futuresedged up 0.2% to settle at $1,795.20 an ounce.The CBOE Volatility Index (VIX) spiked by 12.2% to 18.84.Bitcoinprices retreated 3.7% to$46,974.65. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)t_content-image-mobile@1/v1630009185/Investing/stock-chart-082621.jpg” data-srcset=”https://mediacloud.kiplinger.com/image/private/s–6uP9q4Sf–/f_auto,t_content-image-mobile@1/v1630009185/Investing/stock-chart-082621.jpg 376w,https://mediacloud.kiplinger.com/image/private/s–6uP9q4Sf–/f_auto,t_content-image-desktop@1/v1630009185/Investing/stock-chart-082621.jpg 845w,https://mediacloud.kiplinger.com/image/private/s–6uP9q4Sf–/f_auto,t_content-image-mobile@2/v1630009185/Investing/stock-chart-082621.jpg 752w,https://mediacloud.kiplinger.com/image/private/s–6uP9q4Sf–/f_auto,t_content-image-desktop@2/v1630009185/Investing/stock-chart-082621.jpg 1690w” width=”376″ height=”263.952″ alt=”stock chart for 082621″/>.imgHideOnJavaScriptDisabled_4059a1rkstrzfhg { display: none !important; } stock chart for 082621t_content-image-mobile@1/v1630009185/Investing/stock-chart-082621.jpg” srcset=”https://mediacloud.kiplinger.com/image/private/s–6uP9q4Sf–/f_auto,t_content-image-mobile@1/v1630009185/Investing/stock-chart-082621.jpg 376w,https://mediacloud.kiplinger.com/image/private/s–6uP9q4Sf–/f_auto,t_content-image-desktop@1/v1630009185/Investing/stock-chart-082621.jpg 845w,https://mediacloud.kiplinger.com/image/private/s–6uP9q4Sf–/f_auto,t_content-image-mobile@2/v1630009185/Investing/stock-chart-082621.jpg 752w,https://mediacloud.kiplinger.com/image/private/s–6uP9q4Sf–/f_auto,t_content-image-desktop@2/v1630009185/Investing/stock-chart-082621.jpg 1690w” width=”376″/>

YCharts

Keep Your Sanity Intact

Worried about another round of volatility? Consider adjusting your horizons.

Kip ETF 20: The Best Cheap ETFs You Can Buy

Day and swing traders might be facing a slew of potential headwinds Fed tapering, the Delta variant, the looming debt ceiling deadline and more but diversified long-term buy-and-holders can safely watch from the shore.

That's because when you entrust your wealth to a mix of seasoned fund managers and dirt-cheap index funds, a little short-term noise is unlikely to be as disruptive to you as it is for investors to investors who hang their hopes on a handful of individual stocks.

But which funds make the most sense for you?

Investors often have to tap numerous providers to access the kind of stock, bond and other asset exposure they want, but a handful of companies have a strong and deep enough roster that you can find everything you need under a single banner.

Vanguard funds are often top-of-mind, especially among thriftier investors. But rivalFidelityis worth just as long a look.This storied provider also! knows ho! w to deliver a wide array of productive options while keeping expenses low. Read on as we explore 15 Fidelity funds that offer something for everyone.

Kyle Woodley was long CRM as of this writing.10 Tantalizing International ETFs to Buy