Yahoo Finance Why Booz Allen Hamilton (BAH) Outpaced the Stock Market Today
The latest trading session saw Booz Allen Hamilton (BAH) ending at $152.90, denoting a +1.65% adjustment from its last day's close. This change outpaced the S&P 500's 0.77% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.
The defense contractor's stock has dropped by 1.23% in the past month, falling short of the Business Services sector's loss of 0.77% and the S&P 500's gain of 3.71%.
The upcoming earnings release of Booz Allen Hamilton will be of great interest to investors. In that report, analysts expect Booz Allen Hamilton to post earnings of $1.53 per share. This would mark year-over-year growth of 4.08%. In the meantime, our current consensus estimate forecasts the revenue to be $2.92 billion, indicating a 10.09% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6.05 per share and a revenue of $11.7 billion, demonstrating changes of +10% and +9.75%, respectively, from the preceding year.
Any recent changes to analyst estimates for Booz Allen Hamilton should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.59% upward. Booz Allen Hamilton is currently a Zacks Rank #2 (Buy).
In the context of valuation, Booz Allen Hamilton is at present trading with a Forward P/E ratio of 24.88. This indicates a premium in contrast to its industry's Forward P/E of 20.62.
We can additionally observe that BAH currently boasts a PEG ratio of 1.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Government Services industry stood at 1.78 at the close of the market yesterday.
The Government Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 1, placing it within the top 1% of over 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.
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Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
