We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Boeing (BA) Gains From Varied Operations & Increasing Demand
Read MoreHide Full Article
The Boeing Company’s (BA - Free Report) diversified operations, increasing commercial demand and rising U.S. fiscal defense budget indicate bright growth prospects for this aerospace player.
However, this Zacks Rank #3 (Hold) company faces risks in the China market.
Tailwinds
Boeing has wide operations, and its customers are spread across the globe. The company receives orders from customers across 90 countries globally. As commercial air traffic is expected to increase, it will create demand for new fuel-efficient aircraft, and Boeing is well-poised to benefit from the same.
BA witnessed strong demand in its commercial business. During the first quarter of 2023, the company booked 107 net commercial airplane orders. The company has immense growth prospects as over the next 20 years, 3.8% yearly passenger traffic growth is projected, and it anticipates that the world will need 41,170 new commercial planes through 2041.
Boeing is expected to gain from the current U.S. government’s inclination toward strengthening the nation’s defense system. The Boeing Market Outlook’s projection of a $2.8 trillion market opportunity for defense and space during the next decade aligns with the fiscal 2024 budget spending of $842 billion for national defense programs. The Boeing Defense, Space & Security segment had also won contract awards worth $10 billion in the first quarter of 2023.
Headwinds
Boeing’s 737 MAX program remains a cause of concern. If the company fails to resume aircraft deliveries in China, its expectation of delivery timing and anticipation regarding future gradual production rate increases could be adversely impacted. It also continues to incur notable abnormal production costs in relation to production quality issues, which may hurt its future results.
The Zacks Consensus Estimate for CW’s 2023 earnings per share (EPS) indicates a year-over-year improvement of 8.5%. It delivered a trailing four-quarter earnings surprise of 4%, on average.
The Zacks Consensus Estimate for TDG’s 2023 EPS indicates a year-over-year improvement of 40.2%. It delivered a trailing four-quarter earnings surprise of 9%, on average.
The Zacks Consensus Estimate for KAMN’s 2023 EPS has moved up 2.4% in the past 60 days. It delivered a trailing four-quarter earnings surprise of 44.8%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Boeing (BA) Gains From Varied Operations & Increasing Demand
The Boeing Company’s (BA - Free Report) diversified operations, increasing commercial demand and rising U.S. fiscal defense budget indicate bright growth prospects for this aerospace player.
However, this Zacks Rank #3 (Hold) company faces risks in the China market.
Tailwinds
Boeing has wide operations, and its customers are spread across the globe. The company receives orders from customers across 90 countries globally. As commercial air traffic is expected to increase, it will create demand for new fuel-efficient aircraft, and Boeing is well-poised to benefit from the same.
BA witnessed strong demand in its commercial business. During the first quarter of 2023, the company booked 107 net commercial airplane orders. The company has immense growth prospects as over the next 20 years, 3.8% yearly passenger traffic growth is projected, and it anticipates that the world will need 41,170 new commercial planes through 2041.
Boeing is expected to gain from the current U.S. government’s inclination toward strengthening the nation’s defense system. The Boeing Market Outlook’s projection of a $2.8 trillion market opportunity for defense and space during the next decade aligns with the fiscal 2024 budget spending of $842 billion for national defense programs. The Boeing Defense, Space & Security segment had also won contract awards worth $10 billion in the first quarter of 2023.
Headwinds
Boeing’s 737 MAX program remains a cause of concern. If the company fails to resume aircraft deliveries in China, its expectation of delivery timing and anticipation regarding future gradual production rate increases could be adversely impacted. It also continues to incur notable abnormal production costs in relation to production quality issues, which may hurt its future results.
Stocks to Consider
Some better-ranked stocks in the same sector are CurtissWright Corp. (CW - Free Report) , TransDigm Group Inc. (TDG - Free Report) and Kaman Corp. , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CW’s 2023 earnings per share (EPS) indicates a year-over-year improvement of 8.5%. It delivered a trailing four-quarter earnings surprise of 4%, on average.
The Zacks Consensus Estimate for TDG’s 2023 EPS indicates a year-over-year improvement of 40.2%. It delivered a trailing four-quarter earnings surprise of 9%, on average.
The Zacks Consensus Estimate for KAMN’s 2023 EPS has moved up 2.4% in the past 60 days. It delivered a trailing four-quarter earnings surprise of 44.8%, on average.