Boeing (BA) Rises But Underperforms the Market: What Investors Should Know

Boeing (BA) closed at $177.69 in the latest trading session, up +0.19% from the previous day. The stock underperformed the S&P 500, which was up 0.73% on the day. Meanwhile, the Dow was up 0.16% and the technology-focused Nasdaq was up 0.98%.

Shares of the aircraft maker have gained 18.8% over the past month, outpacing the Aerospace sector’s loss of 2.61% and the S&P 500’s gain of 0.34%.

Investors will be paying close attention to Boeing’s performance in its upcoming earnings release. On that day, Boeing is expected to report earnings of -$2.28 per share, which would represent a year-over-year decline of 385.11%. Meanwhile, the latest consensus estimate is calling for revenue of $17.08 billion, down 22.4% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$16.44 per share and revenue of $68.36 billion, representing changes of -182.96% and -12.13%, respectively would correspond to the previous year.

Investors might also notice recent changes to analyst estimates for Boeing. These revisions help demonstrate the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we have developed the Zacks Rank, a proprietary model that integrates these estimate revisions and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an admirable track record of superior performance, independently audited, with #1 stocks generating an average annual return of +25% generated. Over the past 30 days, the Zacks Consensus EPS estimate has declined 1.48%. Boeing currently sports a Zacks Rank of #3 (Hold).

The aerospace and defense industry is part of the aerospace sector. This industry currently has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 250+ industries.

The strength of our individual industry groups is measured using the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within those groups. Our research shows that the top rated 50% of industries outperform the bottom half by a factor of 2 to 1.

For more information on all of these metrics and much more, visit Zacks.com.

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