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Why the Market Dipped But Boeing (BA) Gained Today

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The most recent trading session ended with Boeing (BA - Free Report) standing at $203.06, reflecting a +1.27% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.56% loss on the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.59%.

Heading into today, shares of the airplane builder had lost 23.9% over the past month, lagging the Aerospace sector's loss of 3.59% and the S&P 500's gain of 1.2% in that time.

The upcoming earnings release of Boeing will be of great interest to investors. The company's earnings report is expected on January 31, 2024. On that day, Boeing is projected to report earnings of -$0.70 per share, which would represent year-over-year growth of 60%. Alongside, our most recent consensus estimate is anticipating revenue of $21.29 billion, indicating a 6.56% upward movement from the same quarter last year.

Investors should also pay attention to any latest changes in analyst estimates for Boeing. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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. Within the past 30 days, our consensus EPS projection has moved 5.65% higher. Right now, Boeing possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Boeing is currently exchanging hands at a Forward P/E ratio of 53.09. This represents a premium compared to its industry's average Forward P/E of 16.52.

We can additionally observe that BA currently boasts a PEG ratio of 13.27. 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 1.81 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 100, this industry ranks in the top 40% of all industries, numbering over 250.

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.

To follow BA in the coming trading sessions, be sure to utilize Zacks.com.


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