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Boeing (BA) Gains But Lags Market: What You Should Know

Boeing (BA) closed at $211.45 in the latest trading session, marking a +0.35% move from the prior day. This move lagged the S&P 500's daily gain of 1.39%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 1.97%.

Heading into today, shares of the airplane builder had lost 3.69% over the past month, lagging the Aerospace sector's loss of 0.97% and the S&P 500's gain of 2.58% in that time.

Wall Street will be looking for positivity from BA as it approaches its next earnings report date. This is expected to be January 27, 2021. On that day, BA is projected to report earnings of -$1.64 per share, which would represent year-over-year growth of 29.61%. Our most recent consensus estimate is calling for quarterly revenue of $15.20 billion, down 15.15% from the year-ago period.

It is also important to note the 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. 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. The Zacks Consensus EPS estimate has moved 5.07% lower within the past month. BA is currently a Zacks Rank #3 (Hold).

In terms of valuation, BA is currently trading at a Forward P/E ratio of 459.15. This valuation marks a premium compared to its industry's average Forward P/E of 16.77.

It is also worth noting that BA currently has a PEG ratio of 114.79. 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 2.2 at yesterday's closing price.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 21% 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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