After an uptrend that started in March, Booz Allen (BAH) erased those gains. Shares lost 16.5% of their value after markets reacted to its quarterly report.
Booz Allen posted fiscal fourth-quarter profits of $193 million or $1.52 a share. This is up from $0.98 a share. However, the company is forecasting fiscal 2026 earnings and revenue that are below analyst estimates. It will cut around 7% of its workforce in the current first quarter. Although defense and intelligence segments are growing, it is too concentrated in the civil business. The Federal government is cutting jobs, hurting this company’s prospects.
UnitedHealth (UNH) looked like it bottomed after the new CEO bought shares. The business model is in question. The firm enjoyed profit margins, achieved through low Medicare claim approvals. This will draw unwanted investigations. Still, UNH stock is in value territory. Its executive team may navigate through the uncertainties ahead.
In the chip sector, AMD (AMD), Qualcomm (QCOM), Intel (INTC), NXP Semiconductor (NXPI), and Microchip (MCHP) lost nearly 5% or more in the last week. Among them, MCHP stock has the best value. Investors will continue to build a position in chip suppliers. NXP is appealing. A cyclical recovery is in the early phases in the analog and embedded MCU (general-purpose microcontrollers) space.
