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Boeing Stock Rises 2.1% in a Month: Should You Hold or Fold the Stock?

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Key Takeaways

  • Boeing shares rose 2.1% over the past month, outperforming the Zacks Aerospace-Defense industry.
  • Rising aircraft demand and major defense contracts continue to drive Boeing's expanding backlog.
  • New deals for Apache helicopters, KC-46A tankers and 737 MAX jets strengthen Boeing's long-term outlook.

The Boeing Company’s (BA - Free Report) shares have rallied 2.1% in the past month, outperforming the Zacks Aerospace-Defense industry’s decline of 3.3%. The company is benefiting from strong momentum across commercial, defense and services, supported by rising aircraft demand, major contract wins and a solid backlog that boosts long-term revenue prospects.
 

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Image Source: Zacks Investment Research

Other defense stocks, such as Lockheed Martin (LMT - Free Report) and Northrop Grumman (NOC - Free Report) , have declined during the same period. Shares of Lockheed Martin have declined 5.2% while those of Northrop Grumman have declined 3.1% during the same timeframe.

Considering Boeing’s outperformance compared with its industry, investors might be left wondering if this is a good time to add BA stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.

Factors Acting in Favor of BA

Boeing remains one of the largest aircraft manufacturers in the United States in terms of revenues, orders and deliveries, particularly in the commercial aerospace industry. Courtesy to the steadily growing demand trend in commercial aerospace, Boeing, being a prominent jet manufacturer, has been witnessing solid delivery and order activities lately. During the third quarter, the company booked 161 net commercial airplane orders. Such solid order activities should continue to bolster revenue performance for Boeing’s commercial business over the long run.

The outlook for the aerospace giant’s defense and space business also remains optimistic, as it remains one of the largest defense contractors globally, as well as a prominent integrator in the International Space Station. 

Boeing’s broad defense and space portfolio continues to drive strong contract wins, including $9 billion secured in the third quarter of 2025, pushing the Boeing Defense, Space & Security (BDS) backlog to $76 billion and supporting 25% year-over-year revenue growth. Ongoing investment in new mission-critical capabilities should further strengthen its position in defense and space markets.

In November 2025, Boeing announced that it will build 96 AH-64E Apache helicopters for Poland. This deal is expected to provide a major boost to its defense business and significantly expand its backlog. After the helicopters are put into service, the multi-year manufacturing run guarantees a steady workload for Boeing's rotorcraft operations and creates opportunities for recurring income from maintenance, training and modernization services.

During the same month, Boeing was awarded a Lot 12 contract by the U.S. Air Force for 15 additional KC-46A Pegasus tankers, valued at $2.47 billion. This strengthens the company’s defense business and expands the global KC-46A fleet to 183 aircraft on order.

Boeing also signed an MoU with flydubai for 75 Boeing 737 MAX airplanes — with options for 75 more — which provides a major boost to its commercial backlog and long-term revenue outlook. Additionally, the deal strengthens the company’s strategic position in the rapidly expanding Middle East aviation sector, raising the possibility of upgrades and service contracts in the future.

Challenges Faced by BA

While Boeing presents strong growth potential, it also faces several key challenges that investors should weigh carefully. Although global air travel demand continues to recover and expand, the aviation industry remains constrained by persistent supply-chain disruptions, including shortages of engines, castings and other critical components.

These bottlenecks have delayed aircraft deliveries and increased production costs, limiting manufacturers’ ability to fully capitalize on rising demand. Additionally, geopolitical tensions and logistical challenges across supplier networks could prolong these constraints.

BA Stock’s Estimates

The Zacks Consensus Estimate for 2025 and 2026 earnings per share (EPS) indicates an increase of 53.24% and 110.15%, respectively, year over year. 
 

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Lockheed Martin’s 2025 and 2026 EPS indicates an increase of 1.6% and 0.88%, respectively, over the past 60 days. The consensus estimate for Northrop Grumman’s 2025 EPS indicates an increase of 2.44% and that for 2026 implies a decline of 0.03% in the past 60 days.

BA’s Earnings Surprise History

The company beat on earnings in two of the trailing four quarters and missed in two, delivering a negative average surprise of 22.4%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

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.

 

Zacks Investment Research
Image Source: Zacks Investment Research

BA Stock Trades at a Discount

In terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.63X, a discount to the industry’s average of 2.41X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.

What Should an Investor Do?

Boeing continues to benefit from strong demand across its commercial and defense segments, with solid aircraft orders, major contract wins and a growing backlog supporting its long-term outlook. Recent deals should further strengthen Boeing’s market position, boost revenue visibility and create long-term opportunities in production, services and global expansion.

However, considering its lower ROIC and persistent supply-chain disruptions, new investors should wait and look for a better entry point. While those who already have this Zacks Rank #3 (Hold) stock in their portfolio may continue to retain it, considering the company’s impressive earnings growth projection. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 


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