BAH Stock Analysis — Booz Allen Hamilton
Sector: Consulting/Defense IT
AI Verdict
BAH is cheap for the sector, but you're paying for stability, not growth, and the moat only matters if earnings stop shrinking.
Competitive Moat
Booz Allen Hamilton provides technology consulting and analytics services, with deep entrenchment in U.S. government defense and intelligence contracts that are difficult for new entrants to penetrate. Its long-term relationships and security clearances create high switching costs for federal clients.
Summary
BAH is notable for its entrenched position as a key IT and analytics consultant to the U.S. defense sector.
Where It Stands
BAH trades at 12.5x next year's earnings, below the industrials sector median of 20x, but with analysts expecting -9.3% EPS growth and trailing revenue down -6.4%.
Key Metrics
- Trailing P/E: 11.3x
- Forward P/E: 12.5x
- Earnings Growth: -0.1%
- Revenue Growth: -0.1%
- Dividend Yield: 0.03%
- 52-Week High: $120.05
- 52-Week Low: $68.84
Analyst Consensus
3 Buy · 12 Hold · 9 Sell (24 analysts)
Bull Case
The 12.5x forward P/E is a steep discount to the sector, reflecting its stable government contracts and potential for reacceleration if budget priorities shift.
Bear Case
With forward EPS expected to shrink by -9.3%, even a modest P/E compression to 10x would mean a double-digit drop from here.
Catalyst to Watch
Watch for updates on federal contract renewals or new awards, as any sign of contract loss or margin pressure could confirm the negative earnings trajectory.