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Boeing (BA) Secures Order for 12 Dreamliner Jets From Qantas
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The Boeing Company (BA - Free Report) recently secured an order for the 787 Dreamliner family of jets from the Australian carrier, Qantas Group. To expand its 787 Dreamliner family jet, Qantas is looking to add four more 787-9 and eight 787-10 airplanes to its already existing portfolio of 14 787-9 jets.
Boeing’s 787 Dreamliner family of jets can fly with sustainable aviation fuel, and eco-friendly GE engines will assist Qantas in taking a step forward in its sustainability goals and reducing emissions by up to 25%. These jets are capable of flying a longer distance non-stop and provide Qantas with the benefits of adding new routes to its network and using less fuel.
What’s Favoring Boeing?
Boeing’s latest Commercial Market Outlook projects the demand for 42,000 new commercial airplanes for the next 20 years. The report further suggests passenger traffic to continue to show strength. This reflects bright growth prospects for commercial aerospace players like Boeing.
It remains the largest aircraft manufacturer in the United States in terms of revenues, orders and deliveries. The strong demand for its commercial planes can be gauged by revenues in the Commercial segment, which increased 41% year over year, mainly driven by higher 787 deliveries.
Boeing delivered 136 commercial planes during the last reported quarter, thus recording growth of 12% year over year. The backlog for its Commercial segment remained healthy, with more than 4,800 airplanes valued at $363 billion.
Such an impressive order backlog assures strength in the performance of the top line of the company, thus boosting its overall returns.
Peer Prospects
Apart from Boeing, aircraft manufacturers in the industry that have an established position in the aircraft manufacturing market and may gain from the flourishing demand are as follows:
Airbus (EADSY - Free Report) enjoys strong demand in the commercial aircraft segment. EADSY delivered 189 commercial aircraft in the second quarter, thus registering growth of 21.9% year over year.EADSY expects to deliver 720 commercial aircraft in 2023.
The long-term (three to five years) earnings growth of EADSY stands at 12.4%. The Zacks Consensus Estimate for 2023 sales calls for a growth rate of 17.8%.
Embraer (ERJ - Free Report) continues to witness the strong market demand for its E-jets worldwide. ERJ delivered 17 commercial jets in the second quarter compared with seven in the prior quarter. ERJ’s commercial jet deliveries are projected in the band of 65-70 jets, while Executive Aviation deliveries are expected in the band of 120-130 aircraft.
Embraer’s long-term earnings growth rate is 17%. ERJ shares have returned 42.5% in the past year.
Price Performance
Shares of Boeing have rallied 39.7% in the past year against the industry’s fall of 7%.
The Zacks Consensus Estimate for Textron’s 2023 sales suggests a growth rate of 32.2% from the prior-year reported figure. The Zacks Consensus Estimate for TXT’s 2024 sales calls for a growth rate of 7.7% from the prior-year estimated figure.
TXT has a long-term earnings growth rate of 11.7%. Shares of Textron have risen 16% in the past year.
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Boeing (BA) Secures Order for 12 Dreamliner Jets From Qantas
The Boeing Company (BA - Free Report) recently secured an order for the 787 Dreamliner family of jets from the Australian carrier, Qantas Group. To expand its 787 Dreamliner family jet, Qantas is looking to add four more 787-9 and eight 787-10 airplanes to its already existing portfolio of 14 787-9 jets.
Boeing’s 787 Dreamliner family of jets can fly with sustainable aviation fuel, and eco-friendly GE engines will assist Qantas in taking a step forward in its sustainability goals and reducing emissions by up to 25%. These jets are capable of flying a longer distance non-stop and provide Qantas with the benefits of adding new routes to its network and using less fuel.
What’s Favoring Boeing?
Boeing’s latest Commercial Market Outlook projects the demand for 42,000 new commercial airplanes for the next 20 years. The report further suggests passenger traffic to continue to show strength. This reflects bright growth prospects for commercial aerospace players like Boeing.
It remains the largest aircraft manufacturer in the United States in terms of revenues, orders and deliveries. The strong demand for its commercial planes can be gauged by revenues in the Commercial segment, which increased 41% year over year, mainly driven by higher 787 deliveries.
Boeing delivered 136 commercial planes during the last reported quarter, thus recording growth of 12% year over year. The backlog for its Commercial segment remained healthy, with more than 4,800 airplanes valued at $363 billion.
Such an impressive order backlog assures strength in the performance of the top line of the company, thus boosting its overall returns.
Peer Prospects
Apart from Boeing, aircraft manufacturers in the industry that have an established position in the aircraft manufacturing market and may gain from the flourishing demand are as follows:
Airbus (EADSY - Free Report) enjoys strong demand in the commercial aircraft segment. EADSY delivered 189 commercial aircraft in the second quarter, thus registering growth of 21.9% year over year.EADSY expects to deliver 720 commercial aircraft in 2023.
The long-term (three to five years) earnings growth of EADSY stands at 12.4%. The Zacks Consensus Estimate for 2023 sales calls for a growth rate of 17.8%.
Embraer (ERJ - Free Report) continues to witness the strong market demand for its E-jets worldwide. ERJ delivered 17 commercial jets in the second quarter compared with seven in the prior quarter. ERJ’s commercial jet deliveries are projected in the band of 65-70 jets, while Executive Aviation deliveries are expected in the band of 120-130 aircraft.
Embraer’s long-term earnings growth rate is 17%. ERJ shares have returned 42.5% in the past year.
Price Performance
Shares of Boeing have rallied 39.7% in the past year against the industry’s fall of 7%.
Image Source: Zacks Investment Research
Zacks Rank
Boeing carries a Zacks Rank #3 (Hold). One better-ranked stock in the same industry is Textron (TXT - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Textron’s 2023 sales suggests a growth rate of 32.2% from the prior-year reported figure. The Zacks Consensus Estimate for TXT’s 2024 sales calls for a growth rate of 7.7% from the prior-year estimated figure.
TXT has a long-term earnings growth rate of 11.7%. Shares of Textron have risen 16% in the past year.