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Boeing (BA): Buy The Dip?

3:33 pm ET, 04 Apr 2018

Boeing Co. (NASDAQ: BA) stock witnessed a dip of 1% in today’s trading. This comes after China declared a 25% tariff on airplanes when President Trump proposed tariffs of $50 Billion on Chinese imports.  What is the price forecast for this stock?

The tariffs imposed by the Chinese government would have an impact on Boeing's short-haul commercial aircraft sales.  This would give the rival Airbus SE a chance to secure the #1 spot on the market. But there is no confirmation of the date when the tariffs would come into effect. 

By 2022, China will become the world’s largest market for planes. Boeing currently has more than 50% market share for commercial jetliners in China. According to International Air Transport Association (IATA), an addition of 921 million airline passengers in China by 2036 will cause a surge in the demand for airplanes. 

Boeing shares lost 6% in March, showing an underperformance vs. market indexes. Another reason for the stock underperformance is supply chain issues, which led to low aircraft delivery rates.

Should you buy the dip? Per Finstead Research, Boeing has the average price target of almost $392. The price target upside is over 20%.

Boeing has the highest valuation among its peers based on the forward P/E ratio.

Boeing Company (The) (BA) Stock Guide

Updated at: 5:31 am ET, 12 Jan 2021

Before we start: if you're looking for BA stock price, you can quickly find it out by visiting Finny and typing "BA quote". If you're looking for a quick scoop on BA stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "BA". You'll get all this info in one place. Or you can just type "BA news" to get the latest stock news.

Looking to buy or sell Boeing Company (The) (BA)? Interested in getting the full scoop on BA, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this BA stock guide, we'll address key questions about BA, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are BA earnings?
2. When is BA earnings date?
3. BA buy or sell? What is BA Finny Score?
4. What are the reasons to buy BA? Why should I buy BA stock?
5. What are the reasons to sell BA? Why should I sell BA stock?
6. What are BA key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are BA earnings?

BA trailing 12-month earnings per share (EPS) is -$7.89.

2. When is BA earnings date?

BA earnings date is January 27, 2021.


3. BA buy or sell? What is BA Finny Score?

#{finnyScore:20}Our quantitative analysis shows 1 reason to buy and 4 reasons to sell BA, resulting in Finny Score of 20.

4. What are the reasons to buy BA? Why should I buy BA stock?

Here are the reasons to buy BA stock:

  • A backlog of over 5,500 commercial aircraft provides growth visibility; these aircraft should be successfully delivered to customers, thanks to strong air travel demand above the historical level of 5% annual growth.
  • Considering the enormous commercial demand in the Chinese market, especially in the single-aisle market, Boeing has started to establish a 737 completions and delivery center in China. The company now expects a $1.1 trillion market in the country for new commercial airplanes over the next 20 years.
  • Boeing is one of the major players in the defense space. Its defense business stands out among its peers because of its broadly diversified programs, strong order bookings and order backlog.
  • Internationally, the company is witnessing strong demand for its commercial as well as defense products, such as fighter jets, the rotorcraft line-up and 737-based military derivatives. The company is also expanding its presence in cyber security, intelligence and surveillance and unmanned systems, where growth rates are higher than the overall defense budget. In a volatile budget environment, rising foreign military sales contracts are more than welcome.
  • Boeing is well-positioned to benefit from emerging market growth and a robust developed market replacement cycle over the next two decades. Its revenue exposure is spread across 90+ countries. The company anticipates that various customers will need over 44,000 new planes between 2019 and 2038.
  • BA cash to debt ratio is 0.44, higher than the average industry (0.15) and sector (0.12) cash to debt ratio. See BA cash to debt chart.

5. What are the reasons to sell BA? Why should I sell BA stock?

Let's look at the reasons to sell BA stock (i.e., the bear case):

  • 737 MAX overhang on Boeing's business and the stock is significant. Some of loyal Boeing's customers, such as United Airlines, are now looking at alternatives and have purchased aircrafts from its main competitor, Airbus.
  • Boeing’s commercial business has suffered because of stalled 737 deliveries. Consequently, its commercial revenue faced a huge decline. Such dismal performance recorded by Boeing’s largest revenue-generating business segment also hit the company’s bottom line and cash position.
  • Airbus is a strong competitor to Boeing: it outpaced Boeing in commercial plane deliveries in 2019 for the first time in eight years. It's also been getting more new orders. Additionally, Airbus is leading the emerging market for long-range, midsize jets.
  • Russian and Chinese manufacturers will begin delivering airplanes comparable to Boeing 737 over the next few years. China is planning to make the first delivery of its C919 single-aisle jet in 2021. The successful launch of this jet may hamper Boeing’s expansion in Asia Pacific in the long run.
  • BA quarterly revenue growth was -29.20%, lower than the industry and sector average revenue growth (2.28% and 0.59%, respectively). See BA revenue growth chart.
  • BA forward P/E ratio is 157.40, which is high compared to its industry peers’ P/E ratios. See BA forward P/E ratio chart.
  • BA Price/Sales ratio is 1.99, which is high compared to its industry peers’ P/S ratios. See BA forward Price/Sales ratio chart.
  • BA Enterprise Value/Revenue multiple is 2.55, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See BA Enterprise Value/Revenue chart.

Key Stats

6. What are BA key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for BA:

Metrics BA
Price $204.20
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 0.00%
Industry Aerospace & Defense
Sector Industrials
Number of Employees 153,000
Market Cap $118.5B
Forward P/E Ratio 182.53
Price/Book Ratio 1.95
Revenue (TTM) $60.76B
YoY Quarterly Revenue Growth -29.20%
Profit Margin -7.34%

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