In the latest trading session, Boeing (BA - Free Report) closed at $330.22, marking a +0.09% move from the previous day. This change lagged the S&P 500's 0.7% gain on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 1.04%.
Heading into today, shares of the airplane builder had lost 4.73% over the past month, lagging the Aerospace sector's gain of 3.19% and the S&P 500's gain of 4.38% in that time.
Investors will be hoping for strength from BA as it approaches its next earnings release, which is expected to be January 29, 2020. The company is expected to report EPS of $1.81, down 66.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.92 billion, down 26.18% from the year-ago period.
It is also important to note the recent changes to analyst estimates for BA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 17.05% lower. BA currently has a Zacks Rank of #3 (Hold).
In terms of valuation, BA is currently trading at a Forward P/E ratio of 21.74. For comparison, its industry has an average Forward P/E of 18.15, which means BA is trading at a premium to the group.
Also, we should mention that BA has a PEG ratio of 2.66. 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 2.32 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% 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.