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

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Boeing (BA - Free Report) closed at $348.75 in the latest trading session, marking a +1.2% move from the prior day. This move outpaced the S&P 500's daily gain of 0.82%. Meanwhile, the Dow gained 0.82%, and the Nasdaq, a tech-heavy index, added 0.64%.

Heading into today, shares of the airplane builder had lost 3.53% over the past month, lagging the Aerospace sector's loss of 1.02% and outpacing the S&P 500's loss of 4.58% in that time.

Wall Street will be looking for positivity from BA as it approaches its next earnings report date. The company is expected to report EPS of $1.81, down 45.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.48 billion, down 19.69% from the year-ago period.

BA's full-year Zacks Consensus Estimates are calling for earnings of $14.43 per share and revenue of $98.87 billion. These results would represent year-over-year changes of -9.87% and -2.23%, respectively.

Investors might also notice recent changes to analyst estimates for BA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 1.52% lower. BA currently has a Zacks Rank of #3 (Hold).

Digging into valuation, BA currently has a Forward P/E ratio of 23.88. This valuation marks a premium compared to its industry's average Forward P/E of 16.1.

We can also see that BA currently has a PEG ratio of 2.14. 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. BA's industry had an average PEG ratio of 1.79 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BA in the coming trading sessions, be sure to utilize Zacks.com.


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