Booz Allen Hamilton (BAH) Laps the Stock Market: Here's Why

Zacks Zacks Open on Zacks
Booz Allen Hamilton (BAH) Laps the Stock Market: Here's Why

In the latest close session, Booz Allen Hamilton (BAH) was up +1.08% at $82.30. This move outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 1.6%.

The defense contractor's shares have seen an increase of 5.58% over the last month, surpassing the Business Services sector's gain of 0.3% and the S&P 500's gain of 5.15%.

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 May 22, 2026. The company is forecasted to report an EPS of $1.33, showcasing a 17.39% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, down 3.1% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.07 per share and a revenue of $11.32 billion, indicating changes of -4.41% and -5.54%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Booz Allen Hamilton. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Booz Allen Hamilton is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Booz Allen Hamilton is presently being traded at a Forward P/E ratio of 13.13. Its industry sports an average Forward P/E of 14.77, so one might conclude that Booz Allen Hamilton is trading at a discount comparatively.

It is also worth noting that BAH currently has a PEG ratio of 4.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. BAH's industry had an average PEG ratio of 1.3 as of yesterday's close.

The Consulting Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


 
Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research