Booz Allen Hamilton: Buy The Dip

(10min)

Summary

  • Booz Allen Hamilton's asset-light model and strategic positioning in AI and cybersecurity make it a compelling buy-the-drop investment opportunity.
  • BAH has a record $39 billion backlog, double-digit revenue growth, and a growing partnership with Amazon Web Services.
  • BAH has a solid balance sheet, consistent dividend growth and share buybacks, enhancing shareholder returns.
  • Despite reliance on U.S. government contracts, BAH's efficiency-focused solutions align well with federal priorities, offering value to its biggest client.
  • Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »

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Asset-light companies can make great portfolio diversifiers, especially if one is already heavy in capital-intensive industries like telcos, energy, and real estate. In fact, Warren Buffett holds a number of these names like Mastercard (MA) and American Express (

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This article was written by

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I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

I provide high-yield, dividend growth investment ideas in the investing group

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BAH over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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