In the latest trading session, Booz Allen Hamilton (BAH) closed at $103.12, marking a +1.41% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.27%. On the other hand, the Dow registered a gain of 0.43%, and the technology-centric Nasdaq increased by 0.37%.
The stock of defense contractor has fallen by 6.86% in the past month, lagging the Business Services sector's gain of 1.84% and the S&P 500's gain of 1.85%.
Analysts and investors alike will be keeping a close eye on the performance of Booz Allen Hamilton in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.51, marking a 16.57% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.98 billion, down 5.26% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.36 per share and a revenue of $12.19 billion, signifying shifts of +0.16% and +1.78%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Booz Allen Hamilton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.19% downward. As of now, Booz Allen Hamilton holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Booz Allen Hamilton has a Forward P/E ratio of 15.99 right now. This valuation marks a discount compared to its industry average Forward P/E of 19.96.
Meanwhile, BAH's PEG ratio is currently 1.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.38.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 94, putting it in the top 39% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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