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The Boeing Company (BA), based in Arlington, Virginia, designs, develops, manufactures, sells, and services commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems. With a market cap of $106.7 billion, Boeing’s operations span the Americas, Asia-Pacific, Europe, and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," Boeing fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the aerospace & defense industry. It operates as one of the largest defense contractors in the U.S. for its premier jet aircraft, along with varied defense products.
Despite its strengths, Boeing slipped 35% from its 52-week high of $267.54, achieved on Dec. 21, 2023. BA stock saw marginal gains over the past three months, lagging behind the S&P 500 Industrial Sector SPDR’s (XLI) 7.7% gains during the same time frame.
Over the longer term, BA dipped 23.6% over the past 52 weeks and 33.4% in 2024, substantially underperforming XLI’s 21.5% gains over the past 52 weeks and 15.3% returns on a YTD basis.
To confirm the bearish trend, BA has traded below its 200-day and 50-day moving average since mid-January with slight fluctuations.
In a series of alarming incidents, Boeing’s passenger aircraft have faced technical malfunctions, leading to tragic accidents. In July, Boeing admitted to defrauding the Federal Aviation Administration, which has severely tarnished its reputation. Adding to its woes, both Moody’s and S&P Global had downgraded Boeing’s bonds, which will lead to higher finance costs for the company.
Following Boeing’s Q2 earnings release on July 31, its shares plunged 6.5% in the subsequent trading session. Its revenues declined by 14.6% year-over-year to $16.9 billion, and it reported a loss per share of $2.90, missing the EPS estimates by 62%.
Boeing’s competitor, Northrop Grumman Corporation (NOC), has outperformed BA. NOC gained 21.7% over the past 52 weeks and 11.8% on a YTD basis, significantly outpacing of BA stock.
Among the 23 analysts covering the BA stock, the consensus rating is a “Moderate Buy.” The mean price target of $220.46 for the BA stock represents a potential upside of 26.9% from current price levels.
On the date of publication, Aditya Sarawgi 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.
