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Boeing (BA) Stock Slides as Market Rises: Facts to Know Before You Trade

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Boeing (BA - Free Report) closed at $201 in the latest trading session, marking a -0.07% move from the prior day. This change lagged the S&P 500's daily gain of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.58%.

Coming into today, shares of the airplane builder had lost 3.57% in the past month. In that same time, the Aerospace sector gained 2.07%, while the S&P 500 gained 2.94%.

The investment community will be paying close attention to the earnings performance of Boeing in its upcoming release. On that day, Boeing is projected to report earnings of -$0.33 per share, which would represent year-over-year growth of 74.02%. At the same time, our most recent consensus estimate is projecting a revenue of $20.08 billion, reflecting a 12.02% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.55 per share and a revenue of $89.51 billion, representing changes of +143.89% and +15.06%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Boeing. 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 14.02% lower within the past month. As of now, Boeing holds a Zacks Rank of #4 (Sell).

With respect to valuation, Boeing is currently being traded at a Forward P/E ratio of 78.94. This signifies a premium in comparison to the average Forward P/E of 17.81 for its industry.

It is also worth noting that BA currently has a PEG ratio of 19.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.89.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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