In the latest close session, Booz Allen Hamilton (BAH) was down 7.04% at $85.40. This move lagged the S&P 500's daily loss of 0.24%. On the other hand, the Dow registered a loss of 0.62%, and the technology-centric Nasdaq increased by 0.23%.
The stock of defense contractor has risen by 12.5% in the past month, leading the Business Services sector's gain of 4.21% and the S&P 500's gain of 1.31%.
The investment community will be paying close attention to the earnings performance of Booz Allen Hamilton in its upcoming release. The company is predicted to post an EPS of $1.25, indicating a 19.35% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.73 billion, indicating a 6.55% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.67 per share and revenue of $11.38 billion, which would represent changes of -10.71% and -5.03%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Booz Allen Hamilton. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Booz Allen Hamilton boasts a Zacks Rank of #3 (Hold).
Investors should also note Booz Allen Hamilton's current valuation metrics, including its Forward P/E ratio of 16.2. This represents a discount compared to its industry average Forward P/E of 19.94.
It is also worth noting that BAH currently has a PEG ratio of 1.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BAH's industry had an average PEG ratio of 1.34 as of yesterday's close.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 80, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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