Boeing 737-800 crashed in China with 132 people on board.
Not surprisingly, the company’s shares are losing ground in today’s trading session.
Earnings estimates keep moving lower, and the stock will need additional positive catalysts to break the current downside trend.
Boeing Stock Is Under Pressure After A Fatal Crash In China
Shares of Boeing found themselves under pressure after Boeing 737-800 crashed in China. The aircraft belonged to China Eastern Airlines and carried 132 people on board. China Eastern Airlines has decided to ground all of the company’s 737-800 planes.
Previously, Boeing had significant problems with 737 MAX in China. After two crashes, China grounded the plane for more than two and a half years.
China Eastern Airlines’ plane was not a 737 MAX, which will likely limit the stock’s downside in the near term. However, the market will likely remain extremely sensitive to any news about the ongoing investigation.
What’s Next For Boeing Stock?
Analyst estimates for Boeing have been moving lower in recent weeks. Currently, analysts expect that Boeing will report earnings of $3.02 per share in 2022 and $7.38 per share in 2023, so the stock is trading at roughly 25 forward P/E for 2023.
The company faced several strong headwinds this year, including high commodity prices and sanctions on Russia, which forced Boeing to cut ties with airlines and suppliers in the country.
However, it remains to be seen whether the crash of the Boeing 737-800 will serve as a longer-term catalyst for the company’s shares. Unless the investigation finds any problems that could be viewed as systemic, the market will likely view the crash as a separate incident.
At the same time, it should be noted that Boeing stock is not that cheap at current levels, so it may need additional catalysts to break the current downside trend.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire