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Booz Allen Hamilton (BAH) Falls More Steeply Than Broader Market: What Investors Need to Know

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Booz Allen Hamilton (BAH - Free Report) closed at $77.29 in the latest trading session, marking a -2.09% move from the prior day. This change lagged the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.

The defense contractor's stock has climbed by 4.65% in the past month, exceeding the Business Services sector's gain of 0.29% and the S&P 500's loss of 0.03%.

The investment community will be paying close attention to the earnings performance of Booz Allen Hamilton in its upcoming release. In that report, analysts expect Booz Allen Hamilton to post earnings of $1.49 per share. This would mark year-over-year growth of 0.68%. Alongside, our most recent consensus estimate is anticipating revenue of $2.81 billion, indicating a 4% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $6.22 per share and a revenue of $11.44 billion, demonstrating changes of -4.45% and +1.97%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Booz Allen Hamilton. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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.

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. The Zacks Consensus EPS estimate has moved 1.5% higher within the past month. As of now, Booz Allen Hamilton holds a Zacks Rank of #3 (Hold).

In terms of valuation, Booz Allen Hamilton is presently being traded at a Forward P/E ratio of 12.7. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 12.7.

We can also see that BAH currently has a PEG ratio of 4.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Consulting Services stocks are, on average, holding a PEG ratio of 0.98 based on yesterday's closing prices.

The Consulting Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 23% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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