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Booz Allen Hamilton (BAH) Stock Declines While Market Improves: Some Information for Investors

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Booz Allen Hamilton (BAH - Free Report) closed the most recent trading day at $81.60, moving -2.95% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 2.51%. Elsewhere, the Dow gained 2.85%, while the tech-heavy Nasdaq added 2.8%.

The defense contractor's stock has climbed by 8.46% in the past month, exceeding the Business Services sector's loss of 6.05% and the S&P 500's loss of 1.66%.

Investors will be eagerly watching for the performance of Booz Allen Hamilton in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.33, indicating a 17.39% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.88 billion, indicating a 3.1% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $6.06 per share and a revenue of $11.32 billion, demonstrating changes of -4.57% and -5.54%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Booz Allen Hamilton. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Booz Allen Hamilton is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Booz Allen Hamilton is currently trading at a Forward P/E ratio of 13.56. For comparison, its industry has an average Forward P/E of 15.12, which means Booz Allen Hamilton is trading at a discount to the group.

It is also worth noting that BAH currently has a PEG ratio of 4.82. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Consulting Services industry was having an average PEG ratio of 1.28.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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