Back to top

Image: Bigstock

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

Read MoreHide Full Article

Boeing (BA) closed the most recent trading day at $283.12, moving +0.89% from the previous trading session. The stock lagged the S&P 500's daily gain of 4.22%. Elsewhere, the Dow gained 4.53%, while the tech-heavy Nasdaq added 3.85%.

Coming into today, shares of the airplane builder had lost 11.74% in the past month. In that same time, the Aerospace sector lost 17.21%, while the S&P 500 lost 7.39%.

Investors will be hoping for strength from BA as it approaches its next earnings release. The company is expected to report EPS of -$1, down 131.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.75 billion, down 13.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.08 per share and revenue of $90.43 billion, which would represent changes of +217.58% and +18.11%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BA. Recent revisions tend to reflect the latest 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.

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 17.76% lower. BA currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, BA is holding a Forward P/E ratio of 68.73. Its industry sports an average Forward P/E of 16.38, so we one might conclude that BA is trading at a premium comparatively.

We can also see that BA currently has a PEG ratio of 6.87. 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 2.14 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% 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.

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

Published in