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

Zacks Equity Research

Boeing (BA) closed at $349.39 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Heading into today, shares of the airplane builder had gained 4.87% over the past month, outpacing the Aerospace sector's gain of 2.6% and the S&P 500's gain of 0.34% in that time.

BA will be looking to display strength as it nears its next earnings release. On that day, BA is projected to report earnings of $1.81 per share, which would represent a year-over-year decline of 45.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.48 billion, down 19.69% from the year-ago period.

BA's full-year Zacks Consensus Estimates are calling for earnings of $14.43 per share and revenue of $98.87 billion. These results would represent year-over-year changes of -9.87% and -2.23%, respectively.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.61% lower within the past month. BA is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, BA currently has a Forward P/E ratio of 24.51. This represents a premium compared to its industry's average Forward P/E of 16.03.

We can also see that BA currently has a PEG ratio of 2.19. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.

To follow BA in the coming trading sessions, be sure to utilize Zacks.com.


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