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

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Boeing (BA - Free Report) closed the most recent trading day at $375.63, moving -1.91% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.3%.

Prior to today's trading, shares of the airplane builder had gained 19.51% over the past month. This has outpaced the Aerospace sector's gain of 4.22% and the S&P 500's gain of 2.99% in that time.

Wall Street will be looking for positivity from BA as it approaches its next earnings report date. On that day, BA is projected to report earnings of $2.33 per share, which would represent a year-over-year decline of 34.92%. Our most recent consensus estimate is calling for quarterly revenue of $20.71 billion, down 17.63% from the year-ago period.

BA's full-year Zacks Consensus Estimates are calling for earnings of $3.98 per share and revenue of $85.61 billion. These results would represent year-over-year changes of -75.14% and -15.35%, respectively.

Any recent changes to analyst estimates for BA should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.97% higher within the past month. BA is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that BA has a Forward P/E ratio of 96.28 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.03.

It is also worth noting that BA currently has a PEG ratio of 11.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BA's industry had an average PEG ratio of 2.12 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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