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BA Stock Outperforms Industry in 6 Months: Should You Stay Invested?
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Key Takeaways
BA booked 140 net commercial airplane orders in first-quarter 2026, supporting future revenue growth.
BA Defense, Space & Security secured $9B in orders and added to an $86B backlog in March 2026.
BA forecasts a $4.7T aviation services market through 2044 and held a $33B services backlog.
The Boeing Company’s (BA - Free Report) shares have risen 9.1% in the past six months against the Zacks Aerospace-Defense industry’s decline of 1%. Boeing remains one of the largest aircraft manufacturers in the world in terms of revenues, orders and deliveries, particularly in the commercial aerospace industry.
Image Source: Zacks Investment Research
Shares of other defense stocks, such as Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) , have gained 17.2% and 1%, respectively, during the same time frame. Lockheed Martin continues to convert demand for key franchise programs into sizable awards, supporting revenue visibility over a multiyear horizon. General Dynamics maintains a strong backlog, supported by robust demand and order activity across its products and services portfolio, providing solid visibility into future growth.
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
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.
Thanks to its diverse defense product portfolio and established footprint in the space technology industry, Boeing witnesses a solid inflow of contracts. Impressively, during the first quarter of 2026, the Boeing Defense, Space & Security unit booked $9 billion in orders, including contracts to continue E-7 Wedgetail development and additional international demand for KC-46 aircraft, which resulted in a solid backlog addition of $86 billion for the period ending March 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. If actual demand is even close to this number, the Boeing Global Services business unit will go places. Total backlog is currently sitting at $33 billion as of March 31, 2026, meaning that visibility is already excellent for the ensuing quarters.
Headwinds for BA Stocks
Production disruptions, regulatory scrutiny and the financial impact of the 737 MAX grounding forced Boeing to rely heavily on debt to support liquidity and maintain operations. As a result, the company still carries a substantial debt burden, which continues to limit its financial flexibility. In first-quarter 2026, consolidated debt stood at approximately $47.2 billion, although this was down from $54.1 billion at the end of 2025 after the company repaid nearly $6.9 billion of debt during the quarter. Because of this elevated debt load and the need to preserve cash for production stabilization, safety improvements, capital investments and the integration of Spirit AeroSystems, Boeing has not yet reinstated common stock dividends or share repurchase programs.
Estimates for BA Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates year-over-year growth of 98.59%.
Image Source: Zacks Investment Research
The consensus estimate for Lockheed Martin’s 2026 EPS indicates year-over-year growth of 29.24%. The Zacks Consensus Estimate for General Dynamics’ 2026 EPS indicates year-over-year growth of 7.24%.
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 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 Stock Trades at a Discount
In terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.78X, a discount to the industry’s average of 2.6X. 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 demand in both its commercial aerospace and defense businesses, driving healthy order activity and a growing backlog. The company is seeing sustained momentum in commercial aircraft deliveries and orders, while its defense and space segment continues to secure major contracts, strengthening long-term revenue visibility. Boeing is also well-positioned to capitalize on the expanding aviation services market, supported by a substantial services backlog and favorable long-term industry growth trends.
Considering high debt levels and poor ROIC, 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 price performance and strong earnings growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BA Stock Outperforms Industry in 6 Months: Should You Stay Invested?
Key Takeaways
The Boeing Company’s (BA - Free Report) shares have risen 9.1% in the past six months against the Zacks Aerospace-Defense industry’s decline of 1%. Boeing remains one of the largest aircraft manufacturers in the world in terms of revenues, orders and deliveries, particularly in the commercial aerospace industry.
Image Source: Zacks Investment Research
Shares of other defense stocks, such as Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) , have gained 17.2% and 1%, respectively, during the same time frame. Lockheed Martin continues to convert demand for key franchise programs into sizable awards, supporting revenue visibility over a multiyear horizon. General Dynamics maintains a strong backlog, supported by robust demand and order activity across its products and services portfolio, providing solid visibility into future growth.
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
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.
Thanks to its diverse defense product portfolio and established footprint in the space technology industry, Boeing witnesses a solid inflow of contracts. Impressively, during the first quarter of 2026, the Boeing Defense, Space & Security unit booked $9 billion in orders, including contracts to continue E-7 Wedgetail development and additional international demand for KC-46 aircraft, which resulted in a solid backlog addition of $86 billion for the period ending March 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. If actual demand is even close to this number, the Boeing Global Services business unit will go places. Total backlog is currently sitting at $33 billion as of March 31, 2026, meaning that visibility is already excellent for the ensuing quarters.
Headwinds for BA Stocks
Production disruptions, regulatory scrutiny and the financial impact of the 737 MAX grounding forced Boeing to rely heavily on debt to support liquidity and maintain operations. As a result, the company still carries a substantial debt burden, which continues to limit its financial flexibility. In first-quarter 2026, consolidated debt stood at approximately $47.2 billion, although this was down from $54.1 billion at the end of 2025 after the company repaid nearly $6.9 billion of debt during the quarter. Because of this elevated debt load and the need to preserve cash for production stabilization, safety improvements, capital investments and the integration of Spirit AeroSystems, Boeing has not yet reinstated common stock dividends or share repurchase programs.
Estimates for BA Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates year-over-year growth of 98.59%.
Image Source: Zacks Investment Research
The consensus estimate for Lockheed Martin’s 2026 EPS indicates year-over-year growth of 29.24%. The Zacks Consensus Estimate for General Dynamics’ 2026 EPS indicates year-over-year growth of 7.24%.
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 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 Stock Trades at a Discount
In terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.78X, a discount to the industry’s average of 2.6X. 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 demand in both its commercial aerospace and defense businesses, driving healthy order activity and a growing backlog. The company is seeing sustained momentum in commercial aircraft deliveries and orders, while its defense and space segment continues to secure major contracts, strengthening long-term revenue visibility. Boeing is also well-positioned to capitalize on the expanding aviation services market, supported by a substantial services backlog and favorable long-term industry growth trends.
Considering high debt levels and poor ROIC, 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 price performance and strong earnings growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.