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Boeing (BA) Dips More Than Broader Markets: What You Should Know

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Boeing (BA - Free Report) closed at $355.96 in the latest trading session, marking a -1.07% move from the prior day. This move lagged the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 1.43%.

Prior to today's trading, shares of the airplane builder had gained 3.99% over the past month. This has lagged the Aerospace sector's gain of 4.79% and outpaced the S&P 500's gain of 2.44% in that time.

Investors will be hoping for strength from BA as it approaches its next earnings release, which is expected to be October 24, 2018. The company is expected to report EPS of $3.52, up 29.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $24.36 billion, up 0.21% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.61 per share and revenue of $98.77 billion. These totals would mark changes of +21.35% and +5.76%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. BA currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BA is holding a Forward P/E ratio of 24.59. For comparison, its industry has an average Forward P/E of 18.86, which means BA is trading at a premium to the group.

Investors should also note that BA has a PEG ratio of 1.79 right now. 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 1.7 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% 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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