Back to top

Image: Bigstock

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

Read MoreHide Full Article

Booz Allen Hamilton (BAH - Free Report) ended the recent trading session at $67.35, demonstrating a -4.43% change from the preceding day's closing price. This change lagged the S&P 500's 0.73% gain on the day. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 1.19%.

Shares of the defense contractor witnessed a loss of 4.62% over the previous month, beating the performance of the Business Services sector with its loss of 4.68%, and underperforming the S&P 500's gain of 0.55%.

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 October 23, 2026. In that report, analysts expect Booz Allen Hamilton to post earnings of $1.44 per share. This would mark a year-over-year decline of 3.36%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.8 billion, indicating a 3.09% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.25 per share and a revenue of $11.45 billion, signifying shifts of -3.99% and +2.08%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Booz Allen Hamilton. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.15% higher within the past month. As of now, Booz Allen Hamilton holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Booz Allen Hamilton is holding a Forward P/E ratio of 11.28. This signifies a discount in comparison to the average Forward P/E of 15.27 for its industry.

We can additionally observe that BAH currently boasts a PEG ratio of 1.72. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Consulting Services industry stood at 1.13 at the close of the market yesterday.

The Consulting Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Published in