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Boeing Stock Surges 6.9% in a Month: Time to Hold or Book Profits?
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Key Takeaways
Boeing booked 140 net commercial airplane orders in Q1 2026, supporting long-term revenue growth.
BA's defense unit secured $9B in Q1 orders, lifting backlog to $86B with strong aircraft demand.
Boeing faces 737 and 787 cancellations, while U.S.-China trade tensions could pressure deliveries.
The Boeing Company’s (BA - Free Report) shares have risen 6.9% in the past month against the Zacks Aerospace-Defense industry’s decline of 7.5%. The company is seeing growth across its commercial, defense and services businesses, driven by robust aircraft demand, significant contract awards and a solid backlog that underpins sustained revenue growth.
Image Source: Zacks Investment Research
Shares of other defense stocks, such as RTX Corporation (RTX - Free Report) and Lockheed Martin (LMT - Free Report) , have declined 12.6% and 18.3%, respectively, during the same time frame. RTX continues to secure strong demand for its combat-proven defense systems from the Pentagon and allied nations, while Lockheed Martin keeps leveraging its broad defense portfolio to win major contracts and strengthen its backlog.
Considering Boeing’s outperformance relative to its industry, investors may be wondering whether now is a good time to add the stock to their portfolios. Let’s examine the factors that have driven the share price gains and assess the company’s investment prospects to make a more 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. Supported by steadily growing demand in the commercial aerospace market, the company, a leading jet manufacturer, has been witnessing strong delivery and order activity.
During the first quarter of 2026, the company booked 140 net commercial airplane orders. Such solid order activities should continue to bolster revenue performance for Boeing’s commercial business over the long run.
Due to its diverse defense product portfolio and established footprint in the space technology industry, Boeing witnesses a solid inflow of contracts. During the first quarter of 2026, the Boeing Defense, Space & Security (“BDS”) unit booked $9 billion in orders, including contracts to continue E-7 Wedgetail development and additional international demand for KC-46 aircraft. This helped the segment maintain a strong backlog of $86 billion as of March 31, 2026. Strong contract wins and a robust backlog position should continue to support the BDS unit’s revenues, which grew 21% year over year in the first quarter of 2026.
The aviation services market, particularly the commercial segment, is set for significant growth in the coming years, fueled by technological advancements, shifting consumer preferences and geopolitical influences. Boeing forecasts a $4.7-trillion market opportunity for commercial aviation support and services in the 20-year period through 2044.
Challenges Confronting BA
Slow production, delayed deliveries and ongoing inspections have likely affected customer sentiment for Boeing’s commercial airplanes, leading to recent order cancellations. Aircraft order cancellations during the three months ended March 31, 2026, totaled $933 million and primarily relate to 737 and 787 aircraft. Ongoing trade tensions between the United States and China pose another challenge. Any escalation in trade disputes could delay these deliveries, hurt Boeing Commercial Airplanes’ revenues and increase inventory costs.
Estimates for BA Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) has decreased 120.83% in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 EPS has increased 1.47% in the past 60 days. The Zacks Consensus Estimate for Lockheed Martin’s 2026 EPS has increased 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 the other two, delivering an average negative surprise of 77.71%.
Image Source: Zacks Investment Research
BA Stock’s Liquidity
The company’s current ratio is 1.18 compared with the industry’s average of 1.13. The ratio of more than one suggests a healthy liquidity position where the business can meet its immediate financial obligations without selling long-term assets.
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 1.84X, a discount to the industry’s average of 2.48X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.
Image Source: Zacks Investment Research
What Should an Investor Do Now?
Boeing continues to benefit from strong commercial aircraft demand, with rising jet orders and deliveries supporting long-term growth in its aerospace business. Its defense and space divisions are also seeing solid contract momentum and backlog expansion, while the company expects major long-term growth opportunities in global aviation services.
Considering ongoing trade tensions and its negative earnings growth, new investors should wait and look for a better entry point. Investors who already hold this Zacks Rank #3 (Hold) stock may consider retaining it, given the company’s strong liquidity and price performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Boeing Stock Surges 6.9% in a Month: Time to Hold or Book Profits?
Key Takeaways
The Boeing Company’s (BA - Free Report) shares have risen 6.9% in the past month against the Zacks Aerospace-Defense industry’s decline of 7.5%. The company is seeing growth across its commercial, defense and services businesses, driven by robust aircraft demand, significant contract awards and a solid backlog that underpins sustained revenue growth.
Image Source: Zacks Investment Research
Shares of other defense stocks, such as RTX Corporation (RTX - Free Report) and Lockheed Martin (LMT - Free Report) , have declined 12.6% and 18.3%, respectively, during the same time frame. RTX continues to secure strong demand for its combat-proven defense systems from the Pentagon and allied nations, while Lockheed Martin keeps leveraging its broad defense portfolio to win major contracts and strengthen its backlog.
Considering Boeing’s outperformance relative to its industry, investors may be wondering whether now is a good time to add the stock to their portfolios. Let’s examine the factors that have driven the share price gains and assess the company’s investment prospects to make a more 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. Supported by steadily growing demand in the commercial aerospace market, the company, a leading jet manufacturer, has been witnessing strong delivery and order activity.
During the first quarter of 2026, the company booked 140 net commercial airplane orders. Such solid order activities should continue to bolster revenue performance for Boeing’s commercial business over the long run.
Due to its diverse defense product portfolio and established footprint in the space technology industry, Boeing witnesses a solid inflow of contracts. During the first quarter of 2026, the Boeing Defense, Space & Security (“BDS”) unit booked $9 billion in orders, including contracts to continue E-7 Wedgetail development and additional international demand for KC-46 aircraft. This helped the segment maintain a strong backlog of $86 billion as of March 31, 2026. Strong contract wins and a robust backlog position should continue to support the BDS unit’s revenues, which grew 21% year over year in the first quarter of 2026.
The aviation services market, particularly the commercial segment, is set for significant growth in the coming years, fueled by technological advancements, shifting consumer preferences and geopolitical influences. Boeing forecasts a $4.7-trillion market opportunity for commercial aviation support and services in the 20-year period through 2044.
Challenges Confronting BA
Slow production, delayed deliveries and ongoing inspections have likely affected customer sentiment for Boeing’s commercial airplanes, leading to recent order cancellations. Aircraft order cancellations during the three months ended March 31, 2026, totaled $933 million and primarily relate to 737 and 787 aircraft. Ongoing trade tensions between the United States and China pose another challenge. Any escalation in trade disputes could delay these deliveries, hurt Boeing Commercial Airplanes’ revenues and increase inventory costs.
Estimates for BA Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) has decreased 120.83% in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RTX’s 2026 EPS has increased 1.47% in the past 60 days. The Zacks Consensus Estimate for Lockheed Martin’s 2026 EPS has increased 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 the other two, delivering an average negative surprise of 77.71%.
Image Source: Zacks Investment Research
BA Stock’s Liquidity
The company’s current ratio is 1.18 compared with the industry’s average of 1.13. The ratio of more than one suggests a healthy liquidity position where the business can meet its immediate financial obligations without selling long-term assets.
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 1.84X, a discount to the industry’s average of 2.48X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.
Image Source: Zacks Investment Research
What Should an Investor Do Now?
Boeing continues to benefit from strong commercial aircraft demand, with rising jet orders and deliveries supporting long-term growth in its aerospace business. Its defense and space divisions are also seeing solid contract momentum and backlog expansion, while the company expects major long-term growth opportunities in global aviation services.
Considering ongoing trade tensions and its negative earnings growth, new investors should wait and look for a better entry point. Investors who already hold this Zacks Rank #3 (Hold) stock may consider retaining it, given the company’s strong liquidity and price performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.