Booz Allen Hamilton Faces Market Pressure as Earnings Report Approaches
Latest Trading Performance and Future Estimates
Booz Allen Hamilton (BAH) closed the latest trading session at $163.24, down by 0.41% from the previous day. This decline was slightly steeper than the S&P 500’s daily loss of 0.18%. In comparison, the Dow Jones fell by 0.8%, while the tech-heavy Nasdaq managed to gain 0.27%.
Before today’s trading, shares of the defense contractor had seen a monthly increase of 3.81%. During this same period, the Business Services sector gained 4.62%, and the S&P 500 rose by 4.46%.
Upcoming Earnings Release
Attention turns to Booz Allen Hamilton as it prepares to announce its earnings on October 25, 2024. Analysts expect the company to report earnings of $1.48 per share, indicating a year-over-year growth of 14.73%. Additionally, the Zacks Consensus Estimate projects net sales of $2.96 billion, marking an increase of 10.85% from the same period last year.
For the entire year, the Zacks Consensus Estimates anticipate earnings of $5.97 per share and revenue of $11.81 billion, reflecting changes of +8.55% and +10.77%, respectively, compared to the prior year.
Analyst Optimism and Stock Movements
Recent adjustments to analyst estimates offer insight into Booz Allen Hamilton’s business outlook. Typically, these revisions signify short-term trends. Positive revisions suggest a sense of optimism among analysts regarding the company’s profitability and performance.
Our analysis indicates that these estimate revisions strongly influence short-term stock movements. The Zacks Rank system, which categorizes stocks from #1 (Strong Buy) to #5 (Strong Sell), has a history of outperforming expectations, particularly stocks rated #1, which have delivered an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has risen by 0.18%, placing Booz Allen Hamilton at a Zacks Rank of #2 (Buy).
Valuation Context
Currently, Booz Allen Hamilton trades at a Forward P/E ratio of 27.47, reflecting a premium compared to the industry’s average Forward P/E of 24.53. Additionally, Booz Allen Hamilton maintains a PEG ratio of 2.36, which considers the expected earnings growth rate. As of the end of yesterday’s trading, the average PEG ratio within the Government Services industry matched this figure.
Sitting within the Business Services sector, the Government Services industry ranks second in the Zacks Industry Rank, which places it in the top 1% of over 250 industries. This ranking evaluates the strength of industry groups based on the average Zacks Rank of the stocks within those groups. Historical data shows that the top-rated industries tend to outperform the bottom half by a factor of 2 to 1.
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Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
