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Boeing (BA) Stock Sinks As Market Gains: What You Should Know

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Boeing (BA - Free Report) closed at $342.79 in the latest trading session, marking a -1.19% move from the prior day. The stock lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.26%.

Coming into today, shares of the airplane builder had lost 0.81% in the past month. In that same time, the Aerospace sector gained 1.24%, while the S&P 500 gained 3.73%.

BA will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2018. On that day, BA is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 31.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.55 billion, up 1% from the year-ago period.

BA's full-year Zacks Consensus Estimates are calling for earnings of $14.63 per share and revenue of $98.85 billion. These results would represent year-over-year changes of +21.51% and +5.84%, respectively.

Investors should also note any recent changes to analyst estimates for BA. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. BA is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, BA is currently trading at a Forward P/E ratio of 23.71. Its industry sports an average Forward P/E of 18.32, so we one might conclude that BA is trading at a premium comparatively.

Investors should also note that BA has a PEG ratio of 1.72 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense industry currently had an average PEG ratio of 1.7 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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