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The Boeing Company (BA), valued at $116.8 billion by market cap, is a leading global aerospace and defense corporation based in Arlington, Virginia. The company excels in designing, manufacturing, and servicing commercial jetliners, military aircraft, and satellites, catering to a broad range of global customers.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Boeing fits this criterion perfectly. Boeing is globally renowned for its comprehensive portfolio, positioning as the largest exporter in the United States, and status as one of the top defense contractors worldwide, contributing to a robust revenue source driven by its commercial and defense divisions.
However, the aerospace giant has slipped 28.9% from its 52-week high of $267.54, set in December last year. Shares of Boeing dipped 4.2% over the past three months, underperforming the broader Dow Jones Industrials Average's ($DOWI) marginal gains over the same time frame.
Longer term, BA is down 27.1% on a YTD basis, lagging behind the DOWI's 3.1% gains. Moreover, shares of Boeing have declined 12.5% over the past 52 weeks, compared to Dow Jones' 14.7% returns over the same time frame.
To confirm the bearish price trend, BA stock has been trading below its 200-day moving average since mid-Jan., remaining mostly below its 50-day moving average during this period.
Boeing has been struggling due to a mix of reputational damage from safety incidents, ongoing quality control issues, financial losses, and fierce competition from Airbus. The stock fell 2.9% on April 24 following the company's report of its Q1 revenue decline in seven quarters, exacerbated by concerns over production slowdowns and potential challenges in acquiring key supplier Spirit AeroSystems.
To emphasize the stock’s underperformance, top rival Lockheed Martin Corporation (LMT) is outperforming BA. Shares of Lockheed Martin have gained 1% over the past 52 weeks and are up 3.1% on a YTD basis.
Despite BA stock’s underwhelming price action, analysts remain moderately bullish about the stock’s prospects. The stock has a consensus rating of "Moderate Buy" from the 23 analysts in coverage, and the mean price target of $223.91 is a premium of 17.7% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
