The latest trading session saw Booz Allen Hamilton (BAH) ending at $135.80, denoting a +0.18% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.39%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 0.32%.
Coming into today, shares of the defense contractor had lost 3.54% in the past month. In that same time, the Business Services sector gained 3%, while the S&P 500 gained 3.6%.
Analysts and investors alike will be keeping a close eye on the performance of Booz Allen Hamilton in its upcoming earnings disclosure. In that report, analysts expect Booz Allen Hamilton to post earnings of $1.48 per share. This would mark year-over-year growth of 4.96%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.83 billion, indicating a 10.31% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.25 per share and revenue of $12 billion, indicating changes of +13.64% and +12.57%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Booz Allen Hamilton. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Booz Allen Hamilton is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Booz Allen Hamilton's current valuation metrics, including its Forward P/E ratio of 21.68. For comparison, its industry has an average Forward P/E of 26.56, which means Booz Allen Hamilton is trading at a discount to the group.
Meanwhile, BAH's PEG ratio is currently 1.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.63.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 73, putting it in the top 30% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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