U.S. Markets closed

Boeing (BA) Gains But Lags Market: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

In the latest trading session, Boeing (BA) closed at $231.01, marking a +1.69% move from the previous day. This move lagged the S&P 500's daily gain of 4.94%. Elsewhere, the Dow gained 4.89%, while the tech-heavy Nasdaq added 4.95%.

Heading into today, shares of the airplane builder had lost 34.09% over the past month, lagging the Aerospace sector's loss of 24.08% and the S&P 500's loss of 17.66% 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 -$1.02 per share, which would represent a year-over-year decline of 132.28%. Our most recent consensus estimate is calling for quarterly revenue of $19.73 billion, down 13.89% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.96 per share and revenue of $90.14 billion, which would represent changes of +185.3% and +17.74%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 27.62% lower. BA is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, BA currently has a Forward P/E ratio of 76.88. Its industry sports an average Forward P/E of 15.33, so we one might conclude that BA is trading at a premium comparatively.

It is also worth noting that BA currently has a PEG ratio of 8.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.81 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 31% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research