Booz Allen Hamilton (BAH) closed the most recent trading day at $86.49, moving +1.44% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.52%.
The stock of defense contractor has risen by 5.55% in the past month, lagging the Business Services sector's gain of 7.31% and overreaching the S&P 500's gain of 3%.
The upcoming earnings release of Booz Allen Hamilton will be of great interest to investors. The company is expected to report EPS of $1.25, down 19.35% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.73 billion, showing a 6.55% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.67 per share and a revenue of $11.38 billion, representing changes of -10.71% and -5.03%, respectively, from the prior year.
Any recent changes to analyst estimates for Booz Allen Hamilton should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. Booz Allen Hamilton is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Booz Allen Hamilton is currently exchanging hands at a Forward P/E ratio of 15.04. For comparison, its industry has an average Forward P/E of 20.94, which means Booz Allen Hamilton is trading at a discount to the group.
We can additionally observe that BAH currently boasts a PEG ratio of 1.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Consulting Services industry held an average PEG ratio of 1.35.
The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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