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

Zacks Equity Research

Boeing (BA) closed at $368.56 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.42%.

Coming into today, shares of the airplane builder had gained 4.24% in the past month. In that same time, the Aerospace sector gained 5.21%, while the S&P 500 gained 2.2%.

Investors will be hoping for strength from BA as it approaches its next earnings release. In that report, analysts expect BA to post earnings of $1.81 per share. This would mark a year-over-year decline of 45.65%. Meanwhile, our latest consensus estimate is calling for revenue of $19.48 billion, down 19.69% from the prior-year quarter.

BA's full-year Zacks Consensus Estimates are calling for earnings of $14.37 per share and revenue of $98.87 billion. These results would represent year-over-year changes of -10.24% 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.46% lower within the past month. 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 26.03 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.14.

We can also see that BA currently has a PEG ratio of 2.33. 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 1.88 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% 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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