From Nasdaq, Inc.: 2025-05-24 07:31:00

Booz Allen Hamilton Holding Corp. (NYSE: BAH) relies heavily on the federal government for 97% of its revenue, leading to a 500% total return in the last 10 years. However, due to potential budget cuts, BAH stock is down over 16% in the last 12 months.

As Congressional leaders seek budget cuts, consulting firms like Booz Allen Hamilton face uncertainty. Despite this, BAH remains the federal government’s top artificial intelligence provider, contributing to a 14% increase in stock value post-earnings report on January 31, 2025.

Booz Allen Hamilton, along with other consulting firms, proposed up to $20 billion in savings to federal contracts. This could impact the upcoming earnings report, but the company’s strong earnings growth, with a 50% operating margin, showcases efficiency and profitability.

Booz Allen Hamilton stock is currently undervalued with a P/E ratio of around 19x, below the sector average of 29x. Recent performance indicates potential undervaluation, and a strong earnings report may push the stock above its 200-day simple moving average at $137.70.



Read more at Nasdaq, Inc.:: Booz Allen Hamilton Earnings: 3 Bullish Signals for BAH Stock