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

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The most recent trading session ended with Booz Allen Hamilton (BAH - Free Report) standing at $128.70, reflecting a +0.26% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.43% loss on the day. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.9%.

Shares of the defense contractor have depreciated by 13.69% over the course of the past month, underperforming the Business Services sector's loss of 4.14% and the S&P 500's loss of 1.98%.

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 January 31, 2025. The company is predicted to post an EPS of $1.48, indicating a 4.96% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.83 billion, indicating a 10.31% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.25 per share and a revenue of $12 billion, signifying shifts of +13.64% and +12.57%, respectively, from the last 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Booz Allen Hamilton boasts a Zacks Rank of #2 (Buy).

In the context of valuation, Booz Allen Hamilton is at present trading with a Forward P/E ratio of 20.53. This expresses a discount compared to the average Forward P/E of 25.42 of its industry.

Investors should also note that BAH has a PEG ratio of 1.54 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Consulting Services industry had an average PEG ratio of 1.54.

The Consulting Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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