The Boeing Company (BA Quick QuoteBA - Free Report) recently delivered the 9th and 10th O3b mPOWER satellites to SES, marking yet another step in bolstering its position in the expanding global space-based connectivity industry. These satellites, equipped with Boeing's fully software-defined payloads, dynamically allocate power to meet real-time user demands, offering high-speed and reliable service. 

As Boeing continues to work with SES on launch preparations for these satellites, scheduled this summer, and is also currently producing three additional satellites for SES’ constellation, investors interested in space technology stocks might rush to add this jet giant to their portfolio. 

However, before making any move, let us dive deeper into Boeing’s recent performance at the bourses, what growth opportunities it can offer and risks (if any) of investing in it. This will help an investor to make an informed decision.

Boeing’s YTD Performance

Shares of Boeing surged a solid 22% in the year-to-date period and outperformed the S&P 500’s return of 6.3%. The stock, however, underperformed the Zacks aerospace-defense industry’s growth of 22.2% and the broader Zacks Aerospace sector’s growth of 23.1%, by a whisker, in the said time frame. 

Image Source: Zacks Investment Research

Shares of other aerospace giants like Embraer (ERJ Quick QuoteERJ - Free Report) and Airbus SE (EADSY Quick QuoteEADSY - Free Report) have also risen considerably year to date and outperformed Boeing. Notably, shares of Embraer and Airbus have gained 66.4% and 30.2%, respectively.

BA Stock’s Growth Opportunities

Boeing stands to benefit significantly from rising global air travel and an aging aircraft fleet, both of which are fueling strong demand for new jets and aftermarket services. This trend directly supports growth in Boeing Global Services (BGS) business segment, which holds a robust $22.04 billion backlog as of March 31, 2025. 

To this end, Boeing forecasts a $4.4 trillion market opportunity in commercial aviation services between 2024 and 2043, positioning the BGS unit for sustained, long-term expansion.

Industry-wide, peers like Embraer and Airbus are also benefiting from this growing aftermarket demand trend. 

In defense, Boeing is well-placed to capitalize on rising U.S. military spending and key program participation. To this end, the proposed 13% increase in U.S. defense spending for FY2026 by President Trump, raising the budget to $1.01 trillion, further strengthens its outlook.

Reflecting this positive momentum, the Zacks Consensus Estimate pegs Boeing’s long-term (three-to-five-years) earnings growth rate at 18.1%, outpacing the industry average of 11.8%. 

Now, let’s take a sneak peek at the company’s near-term estimates to understand whether the figures mirror similar growth prospects.

BA Stock’s Estimates

Boeing’s estimate for second-quarter 2025 sales suggests an improvement of 17.4% from the year-ago quarter’s reported figure, while that for full-year 2025 sales indicates a rally of 25.6%. A similar improvement trend can be observed from its 2026 sales estimates. 

Its quarterly as well as yearly earnings estimates also reflect similar robust performance on a year-over-year basis.  

However, the majority of Boeing’s near-term earnings estimates, except for 2025, reflect a downward revision over the past 60 days. This indicates that investors are losing confidence in the stock’s earnings-generating capabilities.

Image Source: Zacks Investment Research

Image Source: Zacks Investment Research

Risks to Consider Before Choosing Boeing

While Boeing presents strong growth potential, it also faces key challenges that investors should weigh carefully. In particular, its 737 product line has remained a major challenge that has persistently affected Boeing’s commercial airplane business in the recent past. While delivery and subsequent revenue growth have been achieved involving the 737 model in recent quarters, the significant inventory this product line has built up over the course of time has been putting cost pressure on the company, and if it fails to deliver them timely, its commercial unit will suffer once again. 

Moreover, despite a recovery in air travel driving demand for commercial aircraft, persistent global supply-chain disruptions, especially shortages of critical parts, continue to hinder and are expected to affect the aviation industry in 2025. This remains a major risk for jet manufacturers like Boeing, Airbus and Embraer.

BA Stock’s Poor ROIC

The image below shows that BA stock’s trailing 12-month return on invested capital (ROIC) not only lags the peer group’s average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses.

Image Source: Zacks Investment Research

BA Trading at a Discount

In terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.80X, a discount to its peer group’s average of 1.83X. This suggests that investors will be paying a lower price than the company's expected sales growth compared to that of its peer group. The stock’s forward 12-month P/S, however, seems stretched when compared to its five-year median value, 1.41.

Image Source: Zacks Investment Research

Should You Invest in BA Stock Now?

To conclude, investors interested in Boeing should wait for a better entry point, considering the stock’s poor ROIC. Additionally, downward revisions in most of its short-term earnings estimates suggest caution is warranted.

However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, considering robust backlog, solid defense positioning, positive share price performance and expected sales growth — combined with its discounted valuation relative to peers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.