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Boeing (BA) Outpaces Stock Market Gains: What You Should Know
Boeing (BA - Free Report) closed at $200.57 in the latest trading session, marking a +1.54% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.67%.
Heading into today, shares of the airplane builder had lost 0.31% over the past month, outpacing the Aerospace sector's loss of 3.09% and lagging the S&P 500's gain of 0.25% in that time.
Wall Street will be looking for positivity from Boeing as it approaches its next earnings report date. The company is expected to report EPS of -$0.60, up 78.18% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.89 billion, up 27.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.35 per share and revenue of $81.35 billion. These totals would mark changes of +103.16% and +22.13%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Boeing. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 37.21% lower. Boeing is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Boeing is currently trading at a Forward P/E ratio of 569.02. This represents a premium compared to its industry's average Forward P/E of 17.55.
We can also see that BA currently has a PEG ratio of 142.25. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.