Back to top

Image: Bigstock

Booz Allen Hamilton (BAH) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

In the latest close session, Booz Allen Hamilton (BAH - Free Report) was down 3.24% at $76.19. The stock's performance was behind the S&P 500's daily gain of 0.12%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.2%.

Prior to today's trading, shares of the defense contractor had gained 0.32% lagged the Business Services sector's gain of 1.92% and the S&P 500's gain of 9.3%.

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 22, 2026. The company is predicted to post an EPS of $1.33, indicating a 17.39% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.88 billion, reflecting a 3.1% fall from the equivalent quarter last year.

BAH's full-year Zacks Consensus Estimates are calling for earnings of $6.07 per share and revenue of $11.32 billion. These results would represent year-over-year changes of -4.41% and -5.54%, respectively.

It's also important for investors to be aware of any recent modifications 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 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. The Zacks Consensus EPS estimate has moved 0.6% lower within the past month. Booz Allen Hamilton currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Booz Allen Hamilton currently has a Forward P/E ratio of 12.77. This indicates a discount in contrast to its industry's Forward P/E of 14.53.

Investors should also note that BAH has a PEG ratio of 4.54 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Consulting Services industry stood at 1.02 at the close of the market yesterday.

The Consulting Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 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.

To follow BAH in the coming trading sessions, be sure to utilize Zacks.com.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in