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Booz Allen Hamilton (BAH) Stock Drops Despite Market Gains: Important Facts to Note

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Booz Allen Hamilton (BAH - Free Report) closed the latest trading day at $151.96, indicating a -0.1% change from the previous session's end. This change lagged the S&P 500's 1.16% gain on the day. Meanwhile, the Dow experienced a rise of 1.2%, and the technology-dominated Nasdaq saw an increase of 1.16%.

The defense contractor's stock has climbed by 3.05% in the past month, falling short of the Business Services sector's gain of 5.19% and the S&P 500's gain of 3.48%.

The upcoming earnings release of Booz Allen Hamilton will be of great interest to investors. In that report, analysts expect Booz Allen Hamilton to post earnings of $1.49 per share. This would mark year-over-year growth of 15.5%. Simultaneously, our latest consensus estimate expects the revenue to be $2.96 billion, showing a 10.95% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.96 per share and revenue of $11.8 billion. These totals would mark changes of +8.36% and +10.68%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Booz Allen Hamilton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Booz Allen Hamilton is currently a Zacks Rank #3 (Hold).

With respect to valuation, Booz Allen Hamilton is currently being traded at a Forward P/E ratio of 25.52. This represents a premium compared to its industry's average Forward P/E of 22.55.

We can also see that BAH currently has a PEG ratio of 2.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Government Services industry had an average PEG ratio of 2.19 as trading concluded yesterday.

The Government Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 29, finds itself in the top 12% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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