Why Booz Allen Is Poised to Keep Plunging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, management and technology consulting services specialist Booz Allen Hamilton¬† (NYSE: BAH  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Booz Allen and see what CAPS investors are saying about the stock right now.

Booz Allen facts

Headquarters (founded)

McLean, Va. (1914)

Market Cap

$1.8 billion


IT consulting and other services

Trailing-12-Month Revenue

$5.8 billion


Chairman/CEO Ralph Shrader

CFO Samuel Strickland

Trailing-12-Month Return on Equity



$317.6 million / $1.7 billion

Dividend Yield




Deloitte Consulting

SRA International

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 12% of the 66 members who have rated Booz Allen believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, ddttox, succinctly summed up the bear case for our community:

Booz Allen is going through very challenging times. They have just instituted significant pay cuts for mid level management and most of the talented folks they have are looking to leave as soon as they can find another position. ... This combined with the fact that the government consulting market is shrinking and Booz has been unable to gain traction in the commercial market means that they are on a long term downward trend and possibly a death spiral.

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Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 04, 2013, at 2:44 PM, joe461027 wrote:

    nice quote attributable to a caps player with one pick, have any credible sources?

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