Boeing ( BA ) is by far and away the most recognizable name in the aerospace industry. If someone were to mention a "Boeing 747" in conversation, you instantaneously know that person is speaking about the large jet plane with the fancy and comfortable first class seating and the crammed and claustrophobic coach section.
The commercial and military airplane manufacturing giant was in the news this week announcing the sale of 300 jets to Chinese airline and leasing companies . In light of this $38 billion deal, let's examine a few reasons why you may want to consider investing in Boeing stock .
1.) Strong Zacks Rankings
Boeing currently holds a Zacks Rank #2 (Buy), improving upon its last week's Zacks Rank #3 (Hold). In our Style Score grading system, the company has an 'A' for value. Furthermore, in the Aerospace/Defense industry sector, which is a Top 19% sector within the Zacks Industry Rank, Boeing is tied for 2 nd of 13 companies, including having a better ranking than its rival Airbus Group ( EADSY )
2.) Stable and Consistent Earnings Figures
According to our earnings data, of the 26 earnings entries gathered since June 2009, Boeing outperformed the Zacks Consensus Estimate 24 times. The last time the company failed to beat the earnings estimate was the period ending in December 2010. During the 2015 year, Boeing outperformed the estimated EPS by 8.84% and 15.71%.
The current earnings estimate for the upcoming quarter is $2.11. If Boeing continues its trend of outperforming the estimate, even just by $0.01, that would be an increase of over 30% between quarters. Even marginal outperformance is relatively positive for the company.
3.) Value and Dividends
Not only does Boeing offer its shareholders dividend (2.81% per share), the company's Forward PE value is a really strong 16.26. Any PE value under 20 is always a good value stock - the PE being just over 15 is really good.
If Boeing manages to outperform the earnings estimate once again and a higher percentage than last quarter's 15.71%, the company will be in even more demand than it is now. With a proven track record of success, as well as being a value stock, it is difficult to pass up adding Boeing to your portfolio.