Please ensure Javascript is enabled for purposes of website accessibility

Why Booz Allen Is Poised to Keep Plunging

By Brian D. Pacampara, CFA - Apr 4, 2013 at 10:45AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-lagging returns could be written in this 2-Star.

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 (BAH -1.05%) 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

Industry

IT consulting and other services

Trailing-12-Month Revenue

$5.8 billion

Management

Chairman/CEO Ralph Shrader

CFO Samuel Strickland

Trailing-12-Month Return on Equity

32.4%

Cash/Debt

$317.6 million / $1.7 billion

Dividend Yield

2.7%

Competitors

Accenture

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.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Booz Allen Hamilton Stock Quote
Booz Allen Hamilton
BAH
$82.50 (-1.05%) $0.88
Accenture plc Stock Quote
Accenture plc
ACN
$284.06 (-2.41%) $-7.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.