Booz Allen Hamilton (BAH) Gains As Market Dips: What You Should Know

Zacks
28 Jan

The most recent trading session ended with Booz Allen Hamilton (BAH) standing at $135.38, reflecting a +1.45% shift from the previouse trading day's closing. This change outpaced the S&P 500's 1.46% loss on the day. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq lost 3.07%.

Coming into today, shares of the defense contractor had gained 2.92% in the past month. In that same time, the Business Services sector gained 0.87%, while the S&P 500 gained 1.08%.

Investors will be eagerly watching for the performance of Booz Allen Hamilton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 31, 2025. The company is expected to report EPS of $1.48, up 4.96% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.84 billion, indicating a 10.52% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.25 per share and a revenue of $12 billion, representing changes of +13.64% and +12.57%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Booz Allen Hamilton. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Booz Allen Hamilton currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Booz Allen Hamilton is presently being traded at a Forward P/E ratio of 21.34. Its industry sports an average Forward P/E of 23.57, so one might conclude that Booz Allen Hamilton is trading at a discount comparatively.

Meanwhile, BAH's PEG ratio is currently 1.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Consulting Services was holding an average PEG ratio of 1.6 at yesterday's closing price.

The Consulting Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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