Heading into today, shares of the airplane builder had lost 3.08% over the past month, lagging the Aerospace sector’s gain of 3.34% and the S&P 500’s gain of 5.72% 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 April 28, 2021. In that report, analysts expect (BA) to post earnings of -$1.17 per share. This would mark year-over-year growth of 31.18%. Meanwhile, our latest consensus estimate is calling for revenue of $14.38 billion, down 14.94% from the prior-year quarter.
(BA)‘s full-year Zacks Consensus Estimates are calling for earnings of $0.04 per share and revenue of $80.27 billion. These results would represent year-over-year changes of +100.17% and +38.02%, respectively.
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. Over the past month, the Zacks Consensus EPS estimate has moved 127.89% higher. (BA) is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that (BA) has a Forward P/E ratio of 5990.54 right now. Its industry sports an average Forward P/E of 17.18, so we one might conclude that (BA) is trading at a premium comparatively.
It is also worth noting that (BA) currently has a PEG ratio of 1497.64. 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 2.14 at yesterday’s closing price.
The Aerospace – Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 40% 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.
To follow (BA) in the coming trading sessions, be sure to utilize Zacks.com.