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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 $380.47, moving -0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 0.51%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.75%.

Heading into today, shares of the airplane builder had gained 5.55% over the past month, outpacing the Aerospace sector's gain of 3.93% and the S&P 500's gain of 3.44% in that time.

Wall Street will be looking for positivity from BA as it approaches its next earnings report date. This is expected to be October 23, 2019. In that report, analysts expect BA to post earnings of $1.86 per share. This would mark a year-over-year decline of 48.04%. Meanwhile, our latest consensus estimate is calling for revenue of $20.71 billion, down 17.63% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.09 per share and revenue of $85.61 billion. These totals would mark changes of -74.45% and -15.35%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BA currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, BA currently has a Forward P/E ratio of 93.51. This valuation marks a premium compared to its industry's average Forward P/E of 18.12.

Meanwhile, BA's PEG ratio is currently 11.33. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% 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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