Booz Allen Hamilton (BAH) Stock Slides as Market Rises: Facts to Know Before You Trade

Booz Allen Hamilton (BAH) closed the most recent trading day at $78.03, moving -1.17% from the previous trading session. This change lagged the S&P 500's 2.91% gain on the day. On the other hand, the Dow registered a gain of 2.49%, and the technology-centric Nasdaq increased by 3.83%.

The defense contractor's shares have seen an increase of 1.47% over the last month, surpassing the Business Services sector's loss of 7.55% and the S&P 500's loss of 7.64%.

The investment community will be closely monitoring the performance of Booz Allen Hamilton in its forthcoming earnings report. In that report, analysts expect Booz Allen Hamilton to post earnings of $1.33 per share. This would mark a year-over-year decline of 17.39%. Simultaneously, our latest consensus estimate expects the revenue to be $2.88 billion, showing a 3.1% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.06 per share and revenue of $11.32 billion, which would represent changes of -4.57% and -5.54%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Booz Allen Hamilton. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Booz Allen Hamilton is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Booz Allen Hamilton is presently being traded at a Forward P/E ratio of 13.02. This represents a discount compared to its industry average Forward P/E of 14.48.

We can also see that BAH currently has a PEG ratio of 4.63. 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. Consulting Services stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.

The Consulting Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 44, finds itself in the top 18% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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