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

Zacks Equity Research

Boeing (BA) closed at $369.31 in the latest trading session, marking a -1.25% move from the prior day. This move lagged the S&P 500's daily loss of 0.95%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 1.51%.

Prior to today's trading, shares of the airplane builder had gained 5.38% over the past month. This has lagged the Aerospace sector's gain of 7.76% and outpaced the S&P 500's gain of 4.32% in that time.

Investors will be hoping for strength from BA as it approaches its next earnings release. The company is expected to report EPS of $1.81, down 45.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.48 billion, down 19.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.37 per share and revenue of $98.87 billion. These totals would mark changes of -10.24% and -2.23%, respectively, from last year.

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Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.46% lower. BA currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that BA has a Forward P/E ratio of 26.03 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.57.

Meanwhile, BA's PEG ratio is currently 2.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. BA's industry had an average PEG ratio of 1.94 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.

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


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