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Why Booz Allen Hamilton (BAH) Outpaced the Stock Market Today

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Booz Allen Hamilton (BAH - Free Report) ended the recent trading session at $96.18, demonstrating a +2.08% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.65%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, added 0.82%.

Shares of the defense contractor have depreciated by 0.17% over the course of the past month, underperforming the Business Services sector's gain of 3.03%, and the S&P 500's gain of 1.15%.

The investment community will be paying close attention to the earnings performance of Booz Allen Hamilton in its upcoming release. The company is slated to reveal its earnings on January 23, 2026. In that report, analysts expect Booz Allen Hamilton to post earnings of $1.25 per share. This would mark a year-over-year decline of 19.35%. Simultaneously, our latest consensus estimate expects the revenue to be $2.73 billion, showing a 6.55% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.67 per share and revenue of $11.38 billion, indicating changes of -10.71% and -5.03%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Booz Allen Hamilton. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Booz Allen Hamilton possesses a Zacks Rank of #4 (Sell).

In terms of valuation, Booz Allen Hamilton is currently trading at a Forward P/E ratio of 16.62. This valuation marks a discount compared to its industry average Forward P/E of 19.14.

It's also important to note that BAH currently trades at a PEG ratio of 1.66. 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 Consulting Services industry had an average PEG ratio of 1.33 as trading concluded yesterday.

The Consulting Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 32% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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