Booz Allen Hamilton (BAH) closed the most recent trading day at $152.55, moving +1.06% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.21% for the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.26%.
The defense contractor’s stock has climbed by 7.62% in the past month, exceeding the Business Services sector’s gain of 3.14% and the S&P 500’s gain of 5.04%.
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 24, 2024. The company’s earnings per share (EPS) are projected to be $1.22, reflecting a 20.79% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.72 billion, indicating a 11.86% upward movement from the same quarter last year.
It is also important to note the recent changes to analyst estimates for Booz Allen Hamilton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.81% higher. Booz Allen Hamilton presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Booz Allen Hamilton is presently trading at a Forward P/E ratio of 25.66. This represents a premium compared to its industry’s average Forward P/E of 21.51.
One should further note that BAH currently holds a PEG ratio of 2.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The average PEG ratio for the Government Services industry stood at 2.04 at the close of the market yesterday.
The Government Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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.
