Markets
BA

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

Boeing (BA) closed at $342.79 in the latest trading session, marking a -1.19% move from the prior day. The stock lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.26%.

Coming into today, shares of the airplane builder had lost 0.81% in the past month. In that same time, the Aerospace sector gained 1.24%, while the S&P 500 gained 3.73%.

BA will be looking to display strength as it nears its next earnings release, which is expected to be October 24, 2018. On that day, BA is projected to report earnings of $3.59 per share, which would represent year-over-year growth of 31.99%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.55 billion, up 1% from the year-ago period.

BA's full-year Zacks Consensus Estimates are calling for earnings of $14.63 per share and revenue of $98.85 billion. These results would represent year-over-year changes of +21.51% and +5.84%, respectively.

Investors should also note any recent changes to analyst estimates for BA. Recent revisions tend to reflect the latest near-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.

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 0.09% higher. BA is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, BA is currently trading at a Forward P/E ratio of 23.71. Its industry sports an average Forward P/E of 18.32, so we one might conclude that BA is trading at a premium comparatively.

Investors should also note that BA has a PEG ratio of 1.72 right now. 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 industry currently had an average PEG ratio of 1.7 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Boeing Company (BA): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

BA

Other Topics

Investing Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More