Booz Allen Hamilton (BAH) Outperforms Broader Market: What You Need to Know
In the latest trading session, Booz Allen Hamilton (BAH) closed at $129.30, marking a +0.38% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow experienced a rise of 0.32%, and the technology-dominated Nasdaq saw an increase of 0.02%.
The the stock of defense contractor has risen by 13.31% in the past month, leading the Business Services sector's gain of 11.28% and the S&P 500's gain of 13.05%.
The investment community will be closely monitoring the performance of Booz Allen Hamilton in its forthcoming earnings report. The company is scheduled to release its earnings on May 23, 2025. The company is predicted to post an EPS of $1.59, indicating a 19.55% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.02 billion, showing an 8.94% escalation compared to the year-ago quarter.
Investors should also take note of any recent adjustments to analyst estimates for Booz Allen Hamilton. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 a 0.27% fall in the Zacks Consensus EPS estimate. As of now, Booz Allen Hamilton holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Booz Allen Hamilton is currently exchanging hands at a Forward P/E ratio of 18.76. This valuation marks a discount compared to its industry's average Forward P/E of 20.96.
One should further note that BAH currently holds a PEG ratio of 1.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.55.
The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 27% 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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Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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