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

In the latest trading session, Booz Allen Hamilton (BAH) closed at $131.11, marking a -0.06% move from the previous day. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.98%.

Shares of the defense contractor have depreciated by 12.08% over the course of the past month, underperforming the Business Services sector's gain of 0.33% and the S&P 500's gain of 0.34%.

The investment community will be closely monitoring the performance of Booz Allen Hamilton in its forthcoming earnings report. The company's upcoming EPS is projected at $1.48, signifying a 4.96% increase compared to the same quarter of the previous year. 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's also important for investors to be aware of any recent modifications to analyst estimates for Booz Allen Hamilton. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Booz Allen Hamilton presently features a Zacks Rank of #2 (Buy).

With respect to valuation, Booz Allen Hamilton is currently being traded at a Forward P/E ratio of 20.98. For comparison, its industry has an average Forward P/E of 25.73, which means Booz Allen Hamilton is trading at a discount to the group.

We can also see that BAH currently has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Consulting Services industry held an average PEG ratio of 1.58.

The Consulting Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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