In the latest trading session, Boeing (BA – Free Report) closed at $207.21, marking a -0.58% move from the previous day. This change lagged the S&P 500’s 0.23% gain on the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.43%.
Prior to today’s trading, shares of the airplane builder had lost 9.19% over the past month. This has lagged the Aerospace sector’s loss of 3.04% and the S&P 500’s gain of 3.86% 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. The company is expected to report EPS of -$1.06, up 54.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.59 billion, down 18.57% from the year-ago period.
Investors might also notice recent changes to analyst estimates for BA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 535.59% higher. BA is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note BA’s current valuation metrics, including its Forward P/E ratio of 444.61. This valuation marks a premium compared to its industry’s average Forward P/E of 16.49.
Meanwhile, BA’s PEG ratio is currently 111.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Aerospace – Defense was holding an average PEG ratio of 2.19 at yesterday’s closing price.
The Aerospace – Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% 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.