Big Money Buys Up Booz Allen

And the technology consultant could fly higher due to a new NASA contract and a strong, growing dividend. But another likely reason is Big Money lifting the stock.

Booz Allen Brings in Big Money

So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next hot stock. And Booz Allen has many fundamental qualities that are attractive.

This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.

You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.

That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at the Big Money signals BAH has made the last year.

The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:

Source: www.mapsignals.com

In the last year, the stock attracted eight Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.

Now, let’s check out technical action grabbing my attention:

• 1-month outperformance vs. Industrials Select Sector SPDR ETF (+12.2% vs. XLI)

Outperformance is important for leading stocks.

Booz Allen Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Booz Allen has a favorable future earnings outlook and an attractive valuation. Take a look:

• 2-year vs. 1-year EPS growth estimate (+11.8%)
• Forward price-to-earnings ratio (+21.1x)

Source: FactSet

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, BAH became a top-rated stock at my research firm, MAPsignals, in 2018. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

BAH has a lot of qualities that are attracting Big Money. It’s made the Top 20 report four times since 2018, with its first appearance on 11/20/2018…and gaining 91.0% since. The blue bars below show when Booz Allen was a top pick:

Source: www.mapsignals.com

It’s been a top stock in the industrials sector according to the MAPsignals process. I wouldn’t be surprised if BAH makes additional appearances in the years to come. Let’s tie this all together.

Booz Allen Price Prediction

The Booz Allen rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a nearly 1.9% current dividend yield. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no positions in BAH at the time of publication.

Learn more about the MAPsignals process here.

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