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Booz Allen Hamilton (BAH) Stock Dips While Market Gains: Key Facts

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The most recent trading session ended with Booz Allen Hamilton (BAH - Free Report) standing at $101.90, reflecting a -1.31% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day.

The defense contractor's shares have seen a decrease of 16.59% over the last month, not keeping up with the Business Services sector's gain of 0.22% and the S&P 500's gain of 7.21%.

Market participants will be closely following the financial results of Booz Allen Hamilton in its upcoming release. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 7.25% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.99 billion, indicating a 1.63% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.53 per share and revenue of $12.22 billion. These totals would mark changes of +2.83% and +2.03%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Booz Allen Hamilton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, 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 6.45% downward. Booz Allen Hamilton is currently sporting a Zacks Rank of #4 (Sell).

In the context of valuation, Booz Allen Hamilton is at present trading with a Forward P/E ratio of 15.81. This represents a discount compared to its industry's average Forward P/E of 20.61.

We can also see that BAH currently has a PEG ratio of 1.58. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Consulting Services industry held an average PEG ratio of 1.58.

The Consulting Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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