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Booz Allen Hamilton (BAH) Exceeds Market Returns: Some Facts to Consider

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Booz Allen Hamilton (BAH - Free Report) closed the latest trading day at $159.86, indicating a +1.25% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.15%.

Heading into today, shares of the defense contractor had gained 1.9% over the past month, lagging the Business Services sector's gain of 6.6% and the S&P 500's gain of 2% in that time.

The investment community will be paying close attention to the earnings performance of Booz Allen Hamilton in its upcoming release. The company is slated to reveal its earnings on October 25, 2024. The company is forecasted to report an EPS of $1.49, showcasing a 15.5% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.96 billion, showing a 11.02% escalation compared to the year-ago quarter.

BAH's full-year Zacks Consensus Estimates are calling for earnings of $5.96 per share and revenue of $11.81 billion. These results would represent year-over-year changes of +8.36% and +10.77%, respectively.

Investors should also note any recent changes to analyst estimates for Booz Allen Hamilton. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. At present, Booz Allen Hamilton boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Booz Allen Hamilton is at present trading with a Forward P/E ratio of 26.47. Its industry sports an average Forward P/E of 23.72, so one might conclude that Booz Allen Hamilton is trading at a premium comparatively.

Meanwhile, BAH's PEG ratio is currently 2.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Government Services industry had an average PEG ratio of 2.28.

The Government Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 30, finds itself in the top 12% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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