Core Insights - Booz Allen Hamilton Holding Corp. (NYSE:BAH) is recognized as one of the top defense stocks in Goldman Sachs' portfolio, with approximately 50% of its revenue derived from defense customers, including various branches of the U.S. military and other government entities [1] Group 1: Analyst Ratings and Valuation - William Blair analyst Louie DiPalma reiterated a Buy rating on Booz Allen Hamilton, highlighting the company's growing influence in the defense technology sector, as evidenced by its participation in a recent high-profile White House dinner alongside leading technology firms [2] - The analyst also noted that Booz Allen's current valuation is at a five-year low, presenting a potential investment opportunity despite rising valuations among its defense peers [3] Group 2: Company Services and Market Position - Booz Allen Hamilton provides a range of solutions including cybersecurity, artificial intelligence, analytics, digital engineering, and mission-critical IT services, making it one of the largest contractors for the U.S. Department of Defense and other federal sectors [4]

Booz Allen Hamilton (BAH) closed at $100.95 in the latest trading session, marking a +2.97% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.07% for the day. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%. Shares of the defense contractor have depreciated by 4.01% over the course of the past month, outperforming the Business Services sector's loss of 5.09%, and lagging the S&P 500's gain of 1.08%.The investmen ...

Core Insights - Goldman Sachs highlights the top 10 stocks to buy, focusing on defense companies due to increased global defense spending driven by geopolitical tensions [1][6]. Company Overview - Goldman Sachs Group is a leading investment bank with over $720 billion in Assets Under Supervision, emphasizing long-term investments in quality companies with attractive valuations [2]. - The firm has significant exposure to the aerospace and defense sector, which is experiencing growth due to rising defense budgets amid geopolitical conflicts [3]. Recent Developments - The Canadian Government announced the creation of the Defence Investment Agency (DIA) to enhance procurement and investment in advanced defense systems, aligning with NATO's commitment to allocate 5% of GDP for defense [4]. - The U.S. government shutdown has delayed key budget decisions, impacting defense funding, with the Senate failing to pass a defense funding bill [5]. - U.S. Treasury Secretary Scott Bessent expressed concerns about defense companies lagging on deliveries and suggested prioritizing research spending over buybacks [6]. Stock Analysis - **Northrop Grumman Corp. (NYSE:NOC)**: Valued at $384 million in Goldman Sachs' portfolio, it has a 20% share price return from July 1 to October 16. The company is well-positioned to benefit from rising defense budgets and has a strong portfolio in next-generation defense systems [11][12][15]. - **Booz Allen Hamilton Holding Corp. (NYSE:BAH)**: Valued at $154 million, it generates about 50% of its revenue from defense customers. Despite a -7% share price return, analysts see potential due to its attractive valuation and growing influence in advanced defense systems [16][18][19].

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Core Insights - Booz Allen Hamilton has been awarded the "Secure Access Service Edge Solution of the Year" for its Thunderdome platform, recognized as the largest zero-trust program in the nation [1][5][6] Company Overview - Booz Allen Hamilton is an advanced technology company focused on delivering outcomes for critical defense, civil, and national security priorities, employing approximately 33,400 people globally as of June 30, 2025, with a revenue of $12.0 billion for the 12 months ended March 31, 2025 [13][14] Product Details - Thunderdome is a comprehensive suite of IT and cyber-based technologies developed in collaboration with the Defense Information Systems Agency (DISA), incorporating enterprise identity credential and access management, secure access service edge, and software-defined networking tools [2][4] - The platform features Zero Trust Edge for on-premise users, Zero Trust Remote for remote users, and a robust Application Security Stack (AppSS) to protect application workloads across various cloud environments [3][5] Technological Innovation - Thunderdome employs advanced AI-infused analytics to identify new attack patterns and is designed with an open architecture, allowing for the quick addition of new tools or security features [4][9] - The solution is flexible and scalable, enabling it to evolve alongside emerging threats, and can be managed by either the customer or DISA [4][6] Industry Recognition - The 2025 CyberSecurity Breakthrough Awards program received thousands of nominations from over 20 countries, highlighting the cutting-edge technology and resilience of this year's winners in the cybersecurity landscape [7][8]

Company Performance - Booz Allen Hamilton (BAH) closed at $101.62, reflecting a -2.87% change from the previous day, underperforming the S&P 500's gain of 0.47% [1] - The stock has decreased by 4.3% over the past month, contrasting with the Business Services sector's increase of 1.8% and the S&P 500's rise of 2.32% [1] Upcoming Earnings - The company is expected to release its earnings on October 24, 2025, with analysts predicting earnings of $1.51 per share, representing a year-over-year decline of 16.57% [2] - Revenue is anticipated to be $2.98 billion, indicating a 5.26% decrease compared to the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of $6.36 per share and revenue of $12.19 billion, reflecting changes of +0.16% and +1.78% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates suggest a favorable outlook on the business health and profitability of Booz Allen Hamilton [4] - The Zacks Rank system indicates that estimate revisions are correlated with near-term share price momentum [5] Valuation Metrics - Booz Allen Hamilton has a Forward P/E ratio of 16.45, which is lower than the industry average of 20.04 [7] - The company has a PEG ratio of 1.65, compared to the Consulting Services industry's average PEG ratio of 1.4 [7] Industry Context - The Consulting Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 95, placing it in the top 39% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Overview - Booz Allen Hamilton Holding Corporation is an advanced technology company focused on delivering outcomes for critical defense, civil, and national security priorities using AI, cyber, and other cutting-edge technologies [3][4] - The company employs approximately 33,400 people globally and reported revenue of $12.0 billion for the 12 months ended March 31, 2025 [4] Upcoming Events - Booz Allen Hamilton will host a conference call at 8 a.m. EDT on Friday, October 24, 2025, to discuss the financial results for the Second Quarter of Fiscal 2026, which ends on September 30, 2025 [1][9] - A news release containing the financial results will be issued before the call, and the conference call will be webcast simultaneously to the public [2][9] Recent Contracts and Innovations - Booz Allen Hamilton secured a five-year contract with a ceiling of $1.58 billion for intelligence analysis related to countering weapons of mass destruction, awarded in September 2024 [7] - The company announced the launch of Vellox Reverser™, an AI-enabled cloud product designed to automate malware analysis and provide rapid defensive recommendations [8]

Company Performance - Booz Allen Hamilton (BAH) closed at $103.12, with a +1.41% increase from the previous day, outperforming the S&P 500's daily gain of 0.27% [1] - The stock has decreased by 6.86% over the past month, underperforming the Business Services sector's gain of 1.84% and the S&P 500's gain of 1.85% [1] Upcoming Earnings - The company is expected to report an EPS of $1.51, reflecting a 16.57% decline compared to the same quarter last year [2] - Revenue is anticipated to be $2.98 billion, down 5.26% from the prior-year quarter [2] Annual Estimates - For the annual period, earnings are projected at $6.36 per share and revenue at $12.19 billion, indicating changes of +0.16% and +1.78% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates suggest shifting dynamics in short-term business patterns, with positive revisions indicating analyst optimism about the company's profitability [3][4] - The Zacks Consensus EPS estimate has shifted 0.19% downward over the past month, and Booz Allen Hamilton currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Booz Allen Hamilton has a Forward P/E ratio of 15.99, which is lower than the industry average Forward P/E of 19.96 [6] - The company's PEG ratio is currently 1.6, compared to the Consulting Services industry's average PEG ratio of 1.38 [6] Industry Context - The Consulting Services industry, part of the Business Services sector, has a Zacks Industry Rank of 94, placing it in the top 39% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1: Industry Overview - The U.S. government's push for military strength is creating investment opportunities for defense contractors, with over $150 billion allocated for defense projects in the One Big Beautiful Bill Act [1] - Analysts expect companies like CACI International, Booz Allen, and Viasat to benefit from this funding and achieve growth [1] Group 2: CACI International - CACI has quickly become a favored defense stock on Wall Street, with Goldman Sachs upgrading its rating to "Buy" and raising the target price from $407 to $544 [2] - The company has a strong relationship with the U.S. Department of Defense, which accounts for 75% of its revenue, and it is expected to outpace peers in growth due to its shift towards advanced technologies [2] - CACI's proprietary anti-drone systems differentiate it from competitors, with an estimated 26% of its revenue coming from these solutions [2] - CACI's stock has risen 21% year-to-date, with a 13% year-over-year revenue increase to $2.3 billion, surpassing expectations [2] Group 3: Booz Allen - Booz Allen, one of the oldest defense consulting firms, has seen its stock decline 15% this year and nearly 28% over the past 12 months [3] - The company faced contract terminations, with 97 agreements canceled by the Department of Defense, impacting its performance [3] - However, market sentiment is shifting, and analysts predict Booz Allen could rebound, with a focus on its core businesses in AI, cybersecurity, software development, and data analytics [3] - The latest financial report showed a slight revenue decline of 0.6% to $2.9 billion, but adjusted earnings per share increased by 7.2% to $1.48, exceeding expectations [3] Group 4: Viasat - Viasat is gaining attention as a potential high-growth stock, with analysts noting significant upside potential despite recent stock price increases [4] - Potential catalysts include management's consideration of an IPO or spin-off of its defense technology business and expected cash inflow of $568 million from a spectrum agreement with Ligado [4] - The company anticipates positive free cash flow in the second half of the year, boosting investor confidence [4] - Viasat's stock has surged over 200% year-to-date, with a 4% revenue increase to $1.17 billion, although net losses widened from $33 million to $56 million [5]

Group 1 - The new tax law, referred to as the "OBBB," is praised by companies for enhancing consumer capacity and releasing funds, allowing immediate expensing of domestic capital costs for various enterprises [1] - 19% of companies in the Russell 3000 index mentioned the new tax regulation during their earnings calls, indicating a significant awareness and potential impact on corporate strategies [1] - Companies can now fully deduct expenses related to R&D, new equipment, and property in one go, which is expected to save funds and accelerate equipment procurement and facility upgrades [1] Group 2 - Johnson & Johnson views the tax law favorably, linking it to their previously announced $55 billion investment plan in the U.S. and expressing optimism about job creation and innovation [2] - AT&T anticipates saving up to $8 billion in cash taxes from 2025 to 2027, planning to allocate approximately $3.5 billion to expand its fiber network [2] - PACCAR and General Dynamics report increased business inquiries due to released funds, with PACCAR projecting a 4% to 6% growth in parts sales this quarter [3] Group 3 - Companies like Booz Allen and United Rentals have raised their free cash flow expectations by $200 million and $400 million, respectively, due to tax incentives [3] - Northrop Grumman expects to receive $200 million to $250 million in cash tax benefits this year, while Roper Technologies anticipates a tax reduction of about $150 million and $120 million in benefits next year [3] - Some companies, such as Ford and Sherwin-Williams, are still assessing the financial impact of the new tax law, while Boeing does not foresee significant effects this year [3] Group 4 - The tax law may encourage companies to expand their operations in the U.S., but it could also lead to increased costs, complicating the overall financial landscape [4] - Ongoing tariff negotiations add complexity to the situation, suggesting that the financial benefits of the tax law may not be straightforward for all companies [4]