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Boeing (BA) Dips More Than Broader Markets: What You Should Know

Highs and Lows Stock Data

In the latest trading session, Boeing (BA) closed at $344.72, marking a -1.37% move from the previous day. This change lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq lost 0.9%.

Heading into today, shares of the airplane builder had lost 5.09% over the past month, lagging the Aerospace sector's loss of 3.84% and the S&P 500's loss of 1.41% in that time.

Investors will be hoping for strength from BA as it approaches its next earnings release, which is expected to be January 30, 2019. In that report, analysts expect BA to post earnings of $4.49 per share. This would mark a year-over-year decline of 6.46%. Meanwhile, our latest consensus estimate is calling for revenue of $27.01 billion, up 6.49% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $14.99 per share and revenue of $99.66 billion, which would represent changes of +24.5% and +6.71%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BA. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 3.46% higher. BA is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that BA has a Forward P/E ratio of 23.32 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.17.

Also, we should mention that BA has a PEG ratio of 1.7. 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. The Aerospace - Defense was holding an average PEG ratio of 1.48 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 41, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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