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Boeing (BA) Gains But Lags Market: What You Should Know

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Boeing (BA - Free Report) closed the most recent trading day at $208.03, moving +0.65% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 10.96%.

Prior to today's trading, shares of the airplane builder had gained 10.45% over the past month. This has outpaced the Aerospace sector's gain of 1.14% and the S&P 500's loss of 0.23% in that time.

Investors will be hoping for strength from Boeing as it approaches its next earnings release, which is expected to be January 25, 2023. In that report, analysts expect Boeing to post earnings of $0.38 per share. This would mark year-over-year growth of 104.94%. Meanwhile, our latest consensus estimate is calling for revenue of $19.05 billion, up 28.75% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Boeing. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 4.87% lower. Boeing is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Boeing has a Forward P/E ratio of 74.23 right now. For comparison, its industry has an average Forward P/E of 16.96, which means Boeing is trading at a premium to the group.

Investors should also note that BA has a PEG ratio of 18.56 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 2 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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