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

Zacks Equity Research

In the latest trading session, Boeing (BA) closed at $309, marking a -1.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the airplane builder had lost 5.89% in the past month. In that same time, the Aerospace sector gained 2.82%, while the S&P 500 gained 3.23%.

BA will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2020. On that day, BA is projected to report earnings of $1.73 per share, which would represent a year-over-year decline of 68.43%. Meanwhile, our latest consensus estimate is calling for revenue of $21.67 billion, down 23.55% from the prior-year quarter.

Any recent changes to analyst estimates for BA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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 15.97% lower within the past month. BA is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, BA is holding a Forward P/E ratio of 21.52. This represents a premium compared to its industry's average Forward P/E of 18.56.

Also, we should mention that BA has a PEG ratio of 2.63. 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 was holding an average PEG ratio of 2.28 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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