Boeing (BA) Stock Sinks As Market Gains: What You Should Know

The latest trading session saw Boeing (BA) ending at $203.72, denoting a -1.58% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.9%.

The airplane builder's stock has dropped by 1.91% in the past month, falling short of the Aerospace sector's gain of 2.95% and the S&P 500's gain of 3.85%.

The upcoming earnings release of Boeing will be of great interest to investors. On that day, Boeing is projected to report earnings of -$0.33 per share, which would represent year-over-year growth of 74.02%. Meanwhile, the latest consensus estimate predicts the revenue to be $20.12 billion, indicating a 12.27% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $2.55 per share and a revenue of $89.67 billion, demonstrating changes of +143.89% and +15.27%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Boeing. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 28.77% lower within the past month. Currently, Boeing is carrying a Zacks Rank of #4 (Sell).

In terms of valuation, Boeing is currently trading at a Forward P/E ratio of 81.18. This denotes a premium relative to the industry's average Forward P/E of 17.53.

We can additionally observe that BA currently boasts a PEG ratio of 20.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.87.

The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% 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.

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.

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