Booz Allen Hamilton Stock Slumps as Market Rises: Key Insights for Investors

Overview of Booz Allen Hamilton's Recent Performance

Booz Allen Hamilton (BAH) closed at $101.62 in the latest trading session, reflecting a -2.87% decline from the previous day. This movement was notably slower compared to the S&P 500’s daily gain of 0.47%. Meanwhile, the Dow Jones Industrial Average increased by 0.11%, and the Nasdaq, which is heavily weighted towards technology stocks, rose by 0.94%.

Over the past month, BAH’s stock has fallen by 4.3%, underperforming both the Business Services sector, which gained 1.8%, and the S&P 500, which saw an increase of 2.32%. Investors are closely watching the company as it prepares to release its earnings report on October 24, 2025.

Earnings Expectations and Revenue Projections

Analysts anticipate that Booz Allen Hamilton will report earnings of $1.51 per share for the upcoming quarter. This would represent a year-over-year decline of 16.57%. In terms of revenue, the latest consensus estimate predicts $2.98 billion, which is expected to be a 5.26% decrease compared to the same quarter last year.

Looking at the full fiscal year, the Zacks Consensus Estimates suggest that analysts expect earnings of $6.36 per share and revenue of $12.19 billion. These figures would show modest improvements of +0.16% and +1.78%, respectively, compared to the previous year.

Analyst Revisions and Market Outlook

Recent changes in analyst estimates for Booz Allen Hamilton have been observed, indicating shifting perspectives on the company’s short-term performance. These revisions often reflect evolving trends in the business environment. Positive changes in estimates typically signal analysts' confidence in the company's financial health and profitability.

Research shows that these estimate revisions are directly linked to near-term share price movements. The Zacks Rank system was developed to take advantage of this relationship. It considers changes in analyst estimates and provides a clear, actionable rating model for investors.

Understanding the Zacks Rank System

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a proven track record of outperforming the market, with stocks rated #1 generating an average annual return of +25% since 1988, according to third-party audits.

In the past month, the Zacks Consensus EPS estimate for BAH has decreased by 0.19%. Currently, the company holds a Zacks Rank of #3 (Hold), suggesting a neutral stance from analysts.

Valuation Metrics and Industry Position

Booz Allen Hamilton currently has a Forward P/E ratio of 16.45, which is lower than the industry average of 20.04. This indicates that the stock may be undervalued relative to its peers.

Additionally, the company trades at a PEG ratio of 1.65. The PEG ratio is similar to the traditional P/E ratio but also factors in the company’s projected earnings growth rate. The Consulting Services industry had an average PEG ratio of 1.4 at yesterday’s closing price.

Industry and Sector Analysis

The Consulting Services industry, which includes Booz Allen Hamilton, falls under the broader Business Services sector. As of now, the industry has a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank measures the strength of industry groups by evaluating the average Zacks Rank of individual stocks within those groups. Research indicates that the top 50% of rated industries consistently outperform the bottom half by a factor of 2 to 1.

Investors interested in exploring more about these metrics and other relevant data can find detailed insights through various financial platforms and resources.