Analysts on Wall Street project that Booz Allen Hamilton (BAH) will announce quarterly earnings of $1.59 per share in its forthcoming report, representing an increase of 19.4% year over year. Revenues are projected to reach $3.02 billion, increasing 8.9% from the same quarter last year.The current level reflects an upward revision of 0.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial proj ...

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Core Insights - Booz Allen Hamilton Holding Corporation (BAH) has experienced a significant correction since the US elections, currently down approximately 33% from its peak around November 2024 [1] Company Performance - The recent rally from tariff sell-offs has not fully recovered the stock, indicating ongoing volatility in the market [1] Analyst Background - The analysis is conducted by a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management, specializing in equity valuation and market trends [1]

Core Insights - Defense contractors, particularly those specializing in IT systems for the federal government, are facing pressure due to the Department of Government Efficiency (DOGE) seeking cost-cutting measures [1] - The initial aggressive savings target of DOGE has been revised down from approximately $2 trillion to a more manageable $150 billion, which may still impact contractors like Booz Allen Hamilton but is less daunting when distributed across a wider contractor base [5] Company Performance - Booz Allen Hamilton's shares experienced a significant increase of 14.8% in April as investor concerns regarding potential cuts eased following DOGE's revised goals [2] - Prior to April, Booz Allen's stock had declined by about 20% for the year due to uncertainty surrounding DOGE's impact on contracts [4] - The company has maintained a strong growth trajectory, achieving an average revenue growth of 21% over the past five years, supported by a substantial share of classified defense and intelligence contracts [7] Market Dynamics - The DOGE initiative presents a dual scenario for IT specialists like Booz Allen Hamilton, where it could either lead to revenue losses or create new opportunities as government agencies streamline operations [3] - The return of Elon Musk to his role as CEO of Tesla and his announcement to scale back government work may have contributed to the positive market sentiment surrounding Booz Allen Hamilton [4] - The overall impact of DOGE on Booz Allen Hamilton is expected to be mixed, with both opportunities and potential contract cancellations arising from government efficiency efforts [6]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses stocks based on their future earnings and financial health [4] - Momentum Score evaluates stocks based on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with the best overall potential [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to aid in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - Stocks with lower ranks but high Style Scores may still pose risks due to downward earnings forecasts [10] Company Spotlight: Booz Allen Hamilton - Booz Allen Hamilton is a management and technology consulting firm with a Zacks Rank of 3 (Hold) and a VGM Score of A [11] - The company is positioned as a strong candidate for growth investors, with a projected year-over-year earnings growth of 15.1% for the current fiscal year [12] - Recent upward revisions in earnings estimates and a solid earnings surprise average of 6.7% further enhance its attractiveness [12]

Company Performance - Booz Allen Hamilton (BAH) closed at $110.29, reflecting a -1.55% change from the previous session, underperforming the S&P 500's daily loss of 0.17% [1] - Over the last month, BAH shares decreased by 2.87%, which is better than the Business Services sector's loss of 3.14% and the S&P 500's loss of 3.94% [1] Upcoming Earnings - The company is set to release its earnings report on May 23, 2025, with projected EPS of $1.59, indicating a 19.55% increase year-over-year [2] - Revenue is expected to reach $3.02 billion, representing an 8.94% increase compared to the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for BAH suggest a positive outlook regarding the company's business and profitability [3] - The Zacks Rank system, which incorporates these estimate changes, currently ranks BAH at 3 (Hold) [5] Valuation Metrics - BAH has a Forward P/E ratio of 16.18, which is lower than the industry average of 21.74, indicating it may be trading at a discount [6] - The company also has a PEG ratio of 1.16, compared to the Consulting Services industry's average PEG ratio of 1.36 [7] Industry Context - The Consulting Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 24, placing it in the top 10% of over 250 industries [8]

Core Viewpoint - Booz Allen Hamilton's shares declined significantly following the announcement of $5.1 billion in cuts from the Department of Defense budget, raising concerns about the company's reliance on government contracts [1][2]. Group 1: Financial Impact - The Department of Defense announced $5.1 billion in budget cuts, with $1.8 billion specifically allocated to consulting companies, including Booz Allen [2][3]. - Booz Allen's stock has already decreased by 43% from its pre-election all-time highs, suggesting that some negative expectations may already be reflected in the stock price [3][4]. Group 2: Company Performance - Over the past 12 months, Booz Allen reported $11.8 billion in revenue, growing at a double-digit rate, and had a backlog of $39.4 billion as of January [4]. - The recent cuts, while negative, represent a small fraction of the company's overall business, indicating potential resilience [4]. Group 3: Valuation Perspective - Booz Allen's stock is currently trading at around 16 times earnings, which is lower than the average in the low 20s over the past decade, suggesting it may present a value opportunity [5].

Company Performance - Booz Allen Hamilton (BAH) closed at $108.07, with a daily increase of +1.29%, underperforming compared to the S&P 500's gain of 9.52% [1] - Over the past month, BAH shares have decreased by 3.04%, which is less severe than the Business Services sector's decline of 12.29% and the S&P 500's drop of 13.47% [2] Upcoming Earnings - Analysts expect Booz Allen Hamilton to report earnings of $1.59 per share, reflecting a year-over-year growth of 19.55% [3] - The consensus revenue estimate is $3.02 billion, indicating an 8.94% increase from the same quarter last year [3] Analyst Estimates - Recent changes in analyst estimates suggest a positive outlook for Booz Allen Hamilton's business operations and profit generation capabilities [4] - The Zacks Rank system, which evaluates these estimate changes, currently assigns BAH a rank of 3 (Hold) [6] Valuation Metrics - Booz Allen Hamilton has a Forward P/E ratio of 15.41, which is lower than the industry average of 19.49, suggesting it is trading at a discount [7] - The company has a PEG ratio of 1.1, compared to the Consulting Services industry's average PEG ratio of 1.29 [8] Industry Ranking - The Consulting Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 32, placing it in the top 13% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - Booz Allen Hamilton (BAH) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance Indicators - Booz Allen is projected to earn $6.33 per share for the fiscal year ending March 2025, reflecting a year-over-year increase of 15.1% [8]. - Over the past three months, the Zacks Consensus Estimate for Booz Allen has risen by 0.1%, indicating a positive trend in earnings expectations [8]. Zacks Rating System Overview - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade of Booz Allen to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Company Overview - Booz Allen Hamilton (BAH) shares increased by 5.1% to $112.83 in the last trading session, with a higher-than-average trading volume [1] - The stock has gained 1.5% over the past four weeks, indicating a positive trend [1] - The company is recognized for its strong reputation, recurring government contracts, focus on innovation, and commitment to shareholder returns, which attract investors [1] Earnings Expectations - Booz Allen is expected to report quarterly earnings of $1.59 per share, reflecting a year-over-year increase of 19.6% [2] - Revenue projections stand at $3.02 billion, marking an 8.9% rise compared to the same quarter last year [2] - The consensus EPS estimate for Booz Allen has remained unchanged over the last 30 days, suggesting stability in earnings expectations [3] Market Position - Booz Allen currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] - The company operates within the Zacks Consulting Services industry, which includes other firms like Stantec (STN) [3] - Stantec's consensus EPS estimate is $0.78, showing a year-over-year change of 16.4%, and it holds a Zacks Rank of 1 (Strong Buy) [4]