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

Zacks Equity Research
·3 min read

In the latest trading session, Boeing (BA) closed at $208.41, marking a +0.78% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.04%. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, added 0.28%.

Prior to today's trading, shares of the airplane builder had lost 9.55% over the past month. This has lagged the Aerospace sector's loss of 4.08% and the S&P 500's gain of 3.84% 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 January 27, 2021. The company is expected to report EPS of -$1.06, up 54.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.59 billion, down 18.57% from the prior-year quarter.

Any recent changes to analyst estimates for BA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 535.59% higher within the past month. BA is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, BA is holding a Forward P/E ratio of 441.15. This represents a premium compared to its industry's average Forward P/E of 16.27.

Investors should also note that BA has a PEG ratio of 110.29 right now. 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 industry currently had an average PEG ratio of 2.16 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 196, which puts it in the bottom 24% 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.

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


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