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Bear of the Day: Boeing (BA)

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There are few stock stories more frustrating for the American investor than today’s Bear of the Day. A series of unfortunate events led to the demise of this once mighty giant of a company. To be fair, it is still a mega cap company. I can’t tell you how many times I tried to buy the dip, hoping for a great turnaround story to unfold. As of yet, is has not happened for me.

I am talking about Zacks Rank #5 (Strong Sell) Boeing (BA - Free Report) . The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. 

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The hit to Boeing’s earnings has been remarkable. Over the course of the last thirty days, five analysts have cut their earnings estimates for the current year. If you look out to next year’s fiscal year, four analysts have done the same. The bearish moves have dropped our Zacks Consensus Estimate for the current year to an 11-cent loss. Next year, there is a hope for a return to profitability. The Zacks Consensus Estimate calls for a profit of $5.46.

Boeing is a member of the Aerospace – Defense industry which ranks in the Bottom 16% of our Zacks Industry Rank. Most stocks in this industry are actually Zacks Rank #3 (Hold) stocks. However, there is currently one company which is in the good graces of our Zacks Rank. That is Zacks Rank #2 (Buy) Huntington Ingalls Industries (HII).


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