We recently published a list of 11 Best Consulting Stocks to Buy Right Now. In this article, we are going to look at where Booz Allen Hamilton Holding Corporation (NYSE:BAH) stands against other best consulting stocks to buy right now.
According to a report by Mordor Intelligence, the Consulting Service Market is valued at $354.01 billion in 2024 and is projected to reach $447.72 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 4.81%. This growth is driven by several key factors, including the increasing complexity of business operations, the rapid evolution of technology landscapes, and a heightened focus on strategic decision-making. The integration of technology into consulting services is a significant trend shaping the market. Technology-driven consulting leverages advanced tools and techniques to offer cutting-edge solutions.
Big Consulting Firms Profit Massively from AI Consulting
According to a report by the New York Times, AI is revolutionizing the consulting industry, enabling firms to achieve significant revenue growth through services such as AI strategy development, generative AI implementation, and natural language processing solutions. Consulting giants are generating hundreds of millions of dollars from AI services and reshaping the business transformation landscape. Consulting firms are not merely incorporating AI as an additional service; they are restructuring their operations around it. In just two years, Boston Consulting Group (BCG) transformed its AI consulting revenue from zero to an impressive one-fifth of its total earnings. Likewise, McKinsey is forecasting that 40% of its business will soon be AI-related.
AI is redefining efficiency in consulting. PwC’s AI solutions, for example, streamline document searches and analysis for government projects, reducing manual work and enabling deeper, faster insights. Advanced tools like these not only enhance internal processes but also provide clients with actionable intelligence that drives strategic advantage. In addition to efficiency, AI is enabling innovative business models, such as subscription-based services for continuous AI insights. AI tools are also transforming strategic decision-making by offering unbiased, data-driven insights. PwC is investing $1 billion in AI over three years, which underscores the importance of integrating AI into business strategy. According to BCC Research, the global AI consulting services market is experiencing rapid growth, growing at a 34.2% CAGR from 2023 to 2028, rising from $64.3 billion in 2023.
The consulting service market is on the cusp of substantial growth, fueled by the increasing complexity of business operations, the rapid pace of technological evolution, and a heightened focus on strategic decision-making. Big consulting firms are harnessing the power of AI to transform their business models and deliver unprecedented value to clients.
Our Methodology
To compile our list of the 11 best consulting stocks to buy right now, we used Finviz and Yahoo stock screeners to find the companies in the consulting services sector. We then used Insider Monkey’s Hedge Fund database to rank 11 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Booz Allen Hamilton Holding Corporation (NYSE:BAH)
Number of Hedge Fund Investors: 32
Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a global management and technology consulting firm that provides services to public and private sector clients. The United States government is one of the major clients of the company. Booz Allen Hamilton Holding Corporation (NYSE:BAH) operates across a wide range of sectors, including defense, intelligence, and civil.
Booz Allen Hamilton Holding Corporation’s (NYSE:BAH) growth strategy, VoLT, which stands for Velocity, Leadership, and Technology is designed to drive the company’s performance and position it for future success. The VoLT strategy has been instrumental in driving the company’s financial performance. In Q2 2025, the company’s revenue increased 18% year-over-year to $3.1 billion, driven by robust demand across all segments. Booz Allen Hamilton Holding Corporation’s (NYSE:BAH) civil portfolio continues to be a strong driver of growth, with revenues increasing by approximately 12% year-over-year, exclusive of discrete items.
The company’s defense revenue increased 17% year-over-year, whereas intelligence revenue increased by 8% year-over-year, driven by the support to clients on existing geopolitical conflicts, coupled with its role in modernizing defense systems and building future war-fighting capabilities. The company also secured several major contract awards in Q3, including a $2.6 billion US Army Service Solutions for Modernization Analysis Readiness Capability Threat and Training (SSMARTT) task.
To drive future growth, Booz Allen Hamilton Holding Corporation (NYSE:BAH) is leveraging its advancements in IT modernization and data analytics to help civil clients enhance citizen services and improve collaboration between government agencies. The company has successfully transitioned from a primarily analyst-focused business to a technology-enabled one and is now focusing on its cyber security services. The company aims to double its total cyber revenue over the next five years, driven by the growing threat landscape and the need for advanced technological solutions.
Overall, BAH ranks 4th on our list of one of the best consulting stocks to buy right now. While we acknowledge the potential of BAH to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BAH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
