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Booz Allen Hamilton (BAH) Rises But Trails Market: What Investors Should Know

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The most recent trading session ended with Booz Allen Hamilton (BAH - Free Report) standing at $151.84, reflecting a +0.07% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.26%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.35%.

Shares of the defense contractor witnessed a loss of 2.77% over the previous month, trailing the performance of the Business Services sector with its loss of 0.47% and the S&P 500's gain of 3.25%.

The upcoming earnings release of Booz Allen Hamilton will be of great interest to investors. The company's upcoming EPS is projected at $1.53, signifying a 4.08% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.92 billion, reflecting a 10.09% rise from the equivalent quarter last year.

BAH's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $11.7 billion. These results would represent year-over-year changes of +10% and +9.75%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Booz Allen Hamilton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 2.75% rise in the Zacks Consensus EPS estimate. Booz Allen Hamilton presently features a Zacks Rank of #2 (Buy).

Investors should also note Booz Allen Hamilton's current valuation metrics, including its Forward P/E ratio of 25.1. This represents a premium compared to its industry's average Forward P/E of 21.23.

Investors should also note that BAH has a PEG ratio of 1.8 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Government Services stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.

The Government Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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