In the latest trading session, Booz Allen Hamilton (BAH) closed at $104.92, marking a +1.56% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%.
The defense contractor’s stock has dropped by 13.31% in the past month, falling short of the Business Services sector’s gain of 3.69% and the S&P 500’s gain of 4.61%.
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Analysts and investors alike will be keeping a close eye on the performance of Booz Allen Hamilton in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.48, indicating a 7.25% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.99 billion, indicating a 1.63% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.53 per share and a revenue of $12.22 billion, signifying shifts of +2.83% and +2.03%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Booz Allen Hamilton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.45% decrease. Booz Allen Hamilton presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Booz Allen Hamilton currently has a Forward P/E ratio of 15.82. This signifies a discount in comparison to the average Forward P/E of 20.35 for its industry.
Investors should also note that BAH has a PEG ratio of 1.58 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. BAH’s industry had an average PEG ratio of 1.58 as of yesterday’s close.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
