In the latest trading session, Booz Allen Hamilton (BAH) closed at $129.70, marking a -1.08% move from the previous day. This change lagged the S&P 500's 1.1% gain on the day. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq increased by 1.35%.
The the stock of defense contractor has fallen by 11.09% in the past month, lagging the Business Services sector's loss of 1.85% and the S&P 500's gain of 0.22%.
Market participants will be closely following the financial results of Booz Allen Hamilton in its upcoming release. On that day, Booz Allen Hamilton is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 4.96%. In the meantime, our current consensus estimate forecasts the revenue to be $2.83 billion, indicating a 10.31% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.25 per share and revenue of $12 billion, which would represent changes of +13.64% and +12.57%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Booz Allen Hamilton. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. Currently, Booz Allen Hamilton is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Booz Allen Hamilton is presently being traded at a Forward P/E ratio of 20.97. This signifies a discount in comparison to the average Forward P/E of 25.66 for its industry.
It is also worth noting that BAH currently has a PEG ratio of 1.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.58.
The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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