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Boeing (BA) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Boeing (BA) closed at $373.14, marking a -0.47% move from the previous day. This change lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the airplane builder had lost 0.19% over the past month, outpacing the Aerospace sector's loss of 0.26% and the S&P 500's loss of 0.91% in that time.

Wall Street will be looking for positivity from BA as it approaches its next earnings report date. This is expected to be October 23, 2019. In that report, analysts expect BA to post earnings of $2.15 per share. This would mark a year-over-year decline of 39.94%. Our most recent consensus estimate is calling for quarterly revenue of $19.96 billion, down 20.63% from the year-ago period.

BA's full-year Zacks Consensus Estimates are calling for earnings of $3.46 per share and revenue of $82.53 billion. These results would represent year-over-year changes of -78.39% and -18.39%, respectively.

Investors might also notice recent changes to analyst estimates for BA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 15.6% lower within the past month. BA is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, BA currently has a Forward P/E ratio of 108.5. This valuation marks a premium compared to its industry's average Forward P/E of 17.77.

Also, we should mention that BA has a PEG ratio of 12.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 2.04 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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