Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Booz Allen Hamilton as such a stock due to the following factors:
- BAH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.0 million.
- BAH has traded 163,672 shares today.
- BAH traded in a range 252.7% of the normal price range with a price range of $1.23.
- BAH traded above its daily resistance level (quality: 216 days, meaning that the stock is crossing a resistance level set by the last 216 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on BAH:
Booz Allen Hamilton Holding Corporation provides management consulting, technology, and engineering services to corporations, institutions, not-for-profit organizations, and the U.S. government in defense, intelligence, and civil markets in the United States and internationally. The stock currently has a dividend yield of 1.9%. BAH has a PE ratio of 19. Currently there are 7 analysts that rate Booz Allen Hamilton a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Booz Allen Hamilton has been 987,200 shares per day over the past 30 days. Booz Allen Hamilton has a market cap of $4.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.02 and a short float of 4.7% with 6.50 days to cover. Shares are up 5.6% year-to-date as of the close of trading on Monday.
rates Booz Allen Hamilton as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 26.8%. Since the same quarter one year prior, revenues slightly increased by 2.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the IT Services industry and the overall market, BOOZ ALLEN HAMILTON HLDG CP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- BOOZ ALLEN HAMILTON HLDG CP's earnings per share declined by 8.5% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, BOOZ ALLEN HAMILTON HLDG CP reported lower earnings of $1.53 versus $1.54 in the prior year. This year, the market expects an improvement in earnings ($1.65 versus $1.53).
- The debt-to-equity ratio is very high at 7.79 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, BAH's quick ratio is somewhat strong at 1.25, demonstrating the ability to handle short-term liquidity needs.
- You can view the full Booz Allen Hamilton Ratings Report.