We have often heard people joke that it feels like we are living in some sort of movie or simulation.

We have seen developments in politics, the economy, and the stock market that seem like they were written for a Hollywood script.

With the recent re-election of Donald Trump WITH the backing of the world's richest man, Elon Musk, we have reached a whole new level with this film!

These incredibly successful men like to "shake things up" and are in a powerful position to do so. Now, we are seeing many profit opportunities in the wake of their potential actions.

Today’s HX Trader idea is another one of these opportunities…

The idea is management and technology consulting firm Booz Allen Hamilton Holding Corporation (NYSE: BAH).

This Mclean, Virginia-based company is one of the largest contractors to the US government, with a specialty in military and intelligence services. The company was founded in 1914 as Booz Allen, the "Business Research Service," and acquired several other consulting companies over the decades.

After World War II, the company began to focus more on military consulting, and today, it is referred to as "the world's most profitable spy organization.”  They have more than 10,000 employees with government security clearance.

Over the years, the "outsourced spy" business has been very good. The company has posted strong growth in earnings per share or "EPS.”

Here is the table of their results over the last decade…

Over the period, they have grown EPS four-fold and posted solid double-digit growth consistently. This is a strong track record of EPS growth.

With the type of contracts they have with the government, they also have good visibility into their business pipeline. This allows them to beat analyst expectations for results consistently.

Remember that “beating” expectations is a key driver to higher stock prices.

Here is their track record of reporting results versus the analyst expectations for EPS over the last five years…

The company has beaten every quarter except for two in the last couple of years. Most of the time, they have beaten the quarter and have also done so strongly.

This strong track record has led to consistently rising analyst earnings estimates.

This factor is more potent than even beating numbers in driving a stock price higher. Here is the chart showing the estimates for 2025 EPS by analysts and how they have been revised over the last couple of years along with the stock price…

That is remarkable consistency. Especially considering they have had a couple of quarters where they missed numbers.

At HX Trader, we look to identify "winning stocks" that have stumbled. A “winning” stock to us is one that has gone up – preferably a lot.

Here is the chart of the stock price of BAH over the last decade…

The stock has gone from roughly $25 per share to a recent higher of over $180 per share. This has been an outstanding stock over the last ten years.

On the price chart, though, you can see that the stock has been hit hard recently. Here is a chart showing the share price over the last year along with our favorite technical signal – the relative strength index or "RSI" – over that same period…

The stock had been going up strongly all year and spiked higher last month as they reported strong earnings. Almost immediately, though, the stock got slammed.

It did something rare for any stock – it went from an RSI of above 80 to an RSI of below 30 in just a few weeks.

We seldom see this ever happen. In this case, it also didn't happen because of an earnings miss (remember – they had blowout earnings), a product misstep, or an accounting signal.

So why DID the stock get crushed?

The answer is D.O.G.E.

That isn't just the name of a popular "meme-coin" but also the name of the new advisory agency incoming President Donald Trump created under Elon Musk to cut government waste. It stands for the "Department of Government Efficiency.”

The initials don't spell "DOGE" by accident.

When the agency was announced, almost every publicly traded company that generates a large percentage of its revenues from the government was hit hard. BAH gets over 96% of its revenue from the US government!

The idea in the stock market is that these large government contractors will likely experience a more challenging growth environment in the future.

Do we agree?

We don't know, but we are skeptical it will make any difference.

What we are even more confident about is that it will NOT make any difference in the next few quarters.

We think the operating momentum in earnings that has powered BAH stock higher will continue for the next few quarters. That will be more than enough for the stock to recover.

Historically when the stock has reached THIS level of oversold on an RSI basis (below 30), it has been a fantastic buying opportunity.

Here is how it has performed in the last ten years when the RSI traded below 30 and back above it…

We have run this analysis on hundreds and hundreds of companies in the last five years. This is one of the most impressive performances we have ever seen.

This has happened twenty-three times in the past, and EVERY one of those times, the stock has been higher in 90 days. Higher by an average of +14.5%.

Are we about to see the twenty-fourth time? We believe so!

We think it is time to get into the spy game for some potential profits.