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

Zacks Equity Research

Boeing (BA) closed the most recent trading day at $361.61, moving -1.02% from the previous trading session. This change lagged the S&P 500's daily gain of 0.02%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.17%.

Prior to today's trading, shares of the airplane builder had gained 4.72% over the past month. This has lagged the Aerospace sector's gain of 6.69% and the S&P 500's gain of 4.82% 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 July 24, 2019. On that day, BA is projected to report earnings of $1.88 per share, which would represent a year-over-year decline of 43.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.27 billion, down 16.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.29 per share and revenue of $94.17 billion, which would represent changes of -16.99% and -6.88%, respectively, from the prior year.

Any recent changes to analyst estimates for BA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 7.91% lower within the past month. BA is currently a Zacks Rank #3 (Hold).

Looking at its valuation, BA is holding a Forward P/E ratio of 27.48. This valuation marks a premium compared to its industry's average Forward P/E of 17.46.

Also, we should mention that BA has a PEG ratio of 2.46. 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 2.12 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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