U.S. markets close in 30 minutes
  • S&P 500

    4,519.92
    -57.18 (-1.25%)
     
  • Dow 30

    34,463.89
    -175.90 (-0.51%)
     
  • Nasdaq

    15,009.19
    -372.13 (-2.42%)
     
  • Russell 2000

    2,148.74
    -57.60 (-2.61%)
     
  • Crude Oil

    65.73
    -0.77 (-1.16%)
     
  • Gold

    1,786.50
    +23.80 (+1.35%)
     
  • Silver

    22.55
    +0.23 (+1.03%)
     
  • EUR/USD

    1.1312
    +0.0006 (+0.06%)
     
  • 10-Yr Bond

    1.3430
    -0.1050 (-7.25%)
     
  • GBP/USD

    1.3233
    -0.0069 (-0.52%)
     
  • USD/JPY

    112.7490
    -0.4600 (-0.41%)
     
  • BTC-USD

    53,186.18
    -3,865.43 (-6.78%)
     
  • CMC Crypto 200

    1,346.18
    -95.58 (-6.63%)
     
  • FTSE 100

    7,122.32
    -6.89 (-0.10%)
     
  • Nikkei 225

    28,029.57
    +276.20 (+1.00%)
     

Booz Allen (BAH) to Gain From Tracepoint Buyout: Here's How

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Booz Allen Hamilton BAH recently announced that it has completed the purchase of Tracepoint, a digital forensics and incident response ("DFIR") company serving public and private sector clients.

Post its initial strategic investment in Tracepoint, which Booz Allen made in January 2021, it put to use its option to buy out the former's business completely. Financial terms of the deal have been kept under wraps.

Over the past year, shares of Booz Allen have declined 5% against 2.8% growth of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

How Will Booz Allen Benefit?

Booz Allen plans to integrate Tracepoint with its Commercial Cyber business in early 2022. This is a part of its long-term growth strategy to expand business in three key areas: incident response, enterprise consulting and managed services.

The integration is expected to help Booz Allen offer enhanced cyber services and solutions. Tracepoint’s DFIR capabilities and extensive customer relationships should complement and boost Booz Allen’s existing commercial portfolio, and also strengthen its position in the private sector cyber market.

Bill Phelps, executive vice president and leader of Booz Allen’s commercial business, stated, "Tracepoint has an exceptionally qualified team with strong brand recognition in the DFIR market and extensive relationships in its core sectors to expand our commercial offering and accelerate our growth.”

Considering the increasing pace at which organizations and governments around the globe are facing cyber threats, the latest deal seems to be a strategic move on Booz Allen’s part to enhance its incident response capabilities.

Zacks Rank and Stocks to Consider

Booz Allen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Equifax EFX, BGSF Inc. BGSF and Avis Budget CAR, each carrying a Zacks Rank #2 (Buy).

The long-term expected EPS (three to five years) growth rate for Equifax, BGSF and Avis Budget is pegged at 15.2%, 20% and 57.2%, respectively.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report

BGSF, Inc. (BGSF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research