Back to top

Image: Bigstock

Boeing (BA) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Boeing (BA - Free Report) closed the most recent trading day at $333.74, moving +0.29% from the previous trading session. This move lagged the S&P 500's daily gain of 0.35%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.56%.

Heading into today, shares of the airplane builder had lost 3.74% over the past month, lagging the Aerospace sector's gain of 2.41% and the S&P 500's gain of 4.69% in that time.

BA will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2020. On that day, BA is projected to report earnings of $1.92 per share, which would represent a year-over-year decline of 64.96%. Meanwhile, our latest consensus estimate is calling for revenue of $21.80 billion, down 23.09% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for BA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 14.6% lower. BA currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BA is holding a Forward P/E ratio of 19.9. This represents a premium compared to its industry's average Forward P/E of 17.99.

We can also see that BA currently has a PEG ratio of 2.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 2.35 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% 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.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


The Boeing Company (BA) - free report >>

Published in