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

Zacks Equity Research
Tilly's (TLYS) closed the most recent trading day at $16.18, moving -0.98% from the previous trading session.

In the latest trading session, Boeing (BA) closed at $359.50, marking a -1.64% move from the previous day. This change lagged the S&P 500's 1.44% loss on the day. Meanwhile, the Dow lost 1.27%, and the Nasdaq, a tech-heavy index, lost 2.06%.

Coming into today, shares of the airplane builder had gained 0.08% in the past month. In that same time, the Aerospace sector lost 1.77%, while the S&P 500 lost 2.61%.

Wall Street will be looking for positivity from BA as it approaches its next earnings report date. This is expected to be October 24, 2018. In that report, analysts expect BA to post earnings of $3.45 per share. This would mark year-over-year growth of 26.84%. Meanwhile, our latest consensus estimate is calling for revenue of $23.72 billion, down 2.44% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.58 per share and revenue of $98.71 billion. These totals would mark changes of +21.1% and +5.69%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. BA is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BA has a Forward P/E ratio of 25.07 right now. This represents a premium compared to its industry's average Forward P/E of 18.34.

It is also worth noting that BA currently has a PEG ratio of 1.82. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Aerospace - Defense industry currently had an average PEG ratio of 1.67 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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