Booz Allen Hamilton (BAH) Stock Declines While Market Improves: Some Information for Investors

Booz Allen Hamilton (BAH) ended the recent trading session at $150.51, demonstrating a -1.12% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.3%, while the tech-heavy Nasdaq added 0.56%.

Heading into today, shares of the defense contractor had gained 3.37% over the past month, outpacing the Business Services sector's gain of 1.75% and lagging the S&P 500's gain of 5.06% in that time.

The investment community will be paying close attention to the earnings performance of Booz Allen Hamilton in its upcoming release. The company is forecasted to report an EPS of $1.52, showcasing a 3.4% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.89 billion, showing an 8.82% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.99 per share and revenue of $11.72 billion. These totals would mark changes of +8.91% and +9.9%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Booz Allen Hamilton. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.87% higher. Right now, Booz Allen Hamilton possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, Booz Allen Hamilton is currently exchanging hands at a Forward P/E ratio of 25.4. This expresses a premium compared to the average Forward P/E of 21.02 of its industry.

It's also important to note that BAH currently trades at a PEG ratio of 1.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Government Services industry stood at 1.86 at the close of the market yesterday.

The Government Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 4, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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