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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 $326.90, moving -0.03% from the previous trading session. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.1%.

Coming into today, shares of the airplane builder had lost 11.49% in the past month. In that same time, the Aerospace sector lost 4.53%, while the S&P 500 gained 1.82%.

Investors will be hoping for strength from BA as it approaches its next earnings release. The company is expected to report EPS of $2.01, down 63.32% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.80 billion, down 23.09% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.05 per share and revenue of $80.45 billion. These totals would mark changes of -93.44% and -20.45%, respectively, from last 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.74% higher. BA is currently a Zacks Rank #3 (Hold).

Investors should also note BA's current valuation metrics, including its Forward P/E ratio of 310.16. This valuation marks a premium compared to its industry's average Forward P/E of 18.1.

Meanwhile, BA's PEG ratio is currently 37.96. 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 2.1 as of yesterday's close.

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

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