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Boeing (BA) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Boeing (BA) closed at $386.41 in the latest trading session, marking a +0.58% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Coming into today, shares of the airplane builder had gained 15.81% in the past month. In that same time, the Aerospace sector gained 8.02%, while the S&P 500 gained 4.17%.

BA will be looking to display strength as it nears its next earnings release. In that report, analysts expect BA to post earnings of $2.33 per share. This would mark a year-over-year decline of 34.92%. Meanwhile, our latest consensus estimate is calling for revenue of $20.71 billion, down 17.63% from the prior-year quarter.

BA's full-year Zacks Consensus Estimates are calling for earnings of $4.09 per share and revenue of $85.61 billion. These results would represent year-over-year changes of -74.45% and -15.35%, respectively.

It is also important to note the recent changes to analyst estimates for BA. Recent revisions tend to reflect the latest 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. BA currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BA is holding a Forward P/E ratio of 93.83. Its industry sports an average Forward P/E of 18.47, so we one might conclude that BA is trading at a premium comparatively.

Also, we should mention that BA has a PEG ratio of 11.37. 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. BA's industry had an average PEG ratio of 2.15 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.

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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