Latest news with #BoeingCompanyBA
Yahoo
13-05-2025
- Business
- Yahoo
Boeing Wins Order for 777X Aircraft: Should You Buy or Sell the Stock Now?
The Boeing Company BA recently secured a contract from China Airlines to deliver 10 777-9 passenger and four 777-8 Freighter airplanes. Additionally, the airline has options to purchase five 777-9s and four 777-8 Freighter jets. With global customers having ordered more than 520 777X airplanes to date, Boeing's proven prowess in the commercial aerospace market is further strengthened, ensuring its long-term revenue stability. This, in turn, might encourage investors interested in aerospace stocks to add this American jet manufacturer to their portfolio. However, before adding a stock to one's portfolio, one must consider other parameters like share price performance, opportunities as well as risks (if any) to investing in the same. Shares of Boeing have surged 12% over the year-to-date period, outperforming the S&P 500's loss of 4.4%. The stock also beat the Zacks aerospace-defense industry's rise of 10.8% and the broader Zacks Aerospace sector's growth of 9.7% in the said time frame. Image Source: Zacks Investment Research Shares of other aerospace bigwigs like Embraer ERJ and Airbus EADSY have also risen considerably over the year-to-date period. Notably, shares of Embraer and Airbus have gained 31% and 10.5%, respectively. This aerospace manufacturer has been making headlines since the beginning of the year, driven by a series of contract wins across both commercial and defense sectors, as well as several valuable partnership agreements. Together, these developments (expected to strengthen the company's resilience during periods of economic or geopolitical uncertainty) must have reinstated investors' confidence in BA, which got duly reflected in its year-to-date share price hike. Notably, Boeing began its 2025 media account with the announcement of a strategic partnership with Norsk e-Fuel in January, which enables it to invest in the production and availability of sustainable aviation fuel (SAF). In the next month, Boeing secured an order from the Japan Self-Defense Forces for the supply of 17 CH-47 Block II Chinook helicopters. In March, Japan Airlines offered a contract to Boeing to deliver 17 of its 737-8 jets, and BOC Aviation issued an order for the supply of 50 737-8 jets. In April, Boeing signed an agreement to sell portions of its Digital Aviation Solutions business, including its Jeppesen, ForeFlight, AerData and OzRunways assets, to Thoma Bravo for cash worth $10.55 billion. Rising air travel and an aging global fleet are driving demand for new jets and aftermarket services, which likely contributed to Boeing Global Services (BGS) unit generating a solid $5.1 billion in revenues in the first quarter of 2025. Future growth for Boeing in this market looks promising, with the company's upcoming aircraft offering 25-40% better fuel efficiency and lower emissions. With a strong $22.04 billion backlog, as of March 31, 2025, the BGS unit is well-positioned for sustained long-term expansion. In fact, the rapidly growing commercial air travel also bodes well for other aerospace giants like Embraer and Airbus, both of which actively serve the commercial aftermarket services market through their Embraer Services & Support and Airbus Services units, respectively. Boeing's long-term defense outlook also remains strong, supported by rising U.S. defense spending and major program involvement, such as the F-47 Next Generation Air Dominance platform. In the first quarter of 2025, its defense unit secured $4 billion in contracts, taking the backlog to $61.57 billion. Continued innovation, evident from its progress on the MQ-25 program, and strong government support signal strong growth potential for Boeing's defense offerings in the years ahead. In line with this, the consensus estimate for BA's long-term (three-to-five years) earnings growth rate is pegged at 17.9%, higher than the industry's 11.5%. Now, let's take a sneak peek at the company's near-term estimates to understand whether the figures mirror similar growth prospects. Boeing's estimate for second-quarter 2025 sales suggests an improvement of 18.4% from the year-ago quarter's reported figure, while that for full-year 2025 sales indicates a rally of 25.7%. A similar improvement trend can be observed from its 2026 sales estimates. Its quarterly as well as yearly earnings estimates also reflect similar robust performance on a year-over-year basis. Additionally, an upward revision has been observed in the company's near-term earnings estimates over the past 60 days. This indicates that investors are gaining confidence in the stock's earnings-generating capabilities. Image Source: Zacks Investment Research Image Source: Zacks Investment Research While Boeing offers strong growth prospects, it also faces significant challenges that could affect its operational performance, which investors should carefully consider before investing in the stock. Although the commercial aerospace market has been benefiting from steady growth in air travel in recent times, persistent supply-chain issues, particularly those arising from a shortage of aircraft parts, continue to affect the global aviation industry. This, in turn, poses a significant risk for aircraft manufacturers, such as Boeing, Embraer and Airbus. Looking ahead, persistent supply-chain issues are expected to continue to play the role of a primary growth inhibitor in the commercial aviation industry this year as well. Moreover, the recently imposed tariffs by the U.S. administration on imported goods might exacerbate the global supply-chain turmoil, resulting in delays in acquiring parts needed for Boeing's jet production. This might increase Boeing's production costs and strain its production timelines, creating uncertain challenges for the jet giant in maintaining its delivery schedules. This, in turn, might hurt its financial position. The image below shows that BA stock's trailing 12-month return on invested capital (ROIC) not only lags the peer group's average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses. Image Source: Zacks Investment Research However, the ROIC of its peers, Embraer and Airbus, is currently better than that of Boeing. While ERJ's ROIC is currently 14.24, that of EADSY is 4.71. In terms of valuation, RTX's forward 12-month price-to-sales (P/S) is 1.69X, a premium to its peer group's average of 1.66X. This suggests that investors will be paying a higher price than the company's expected sales growth compared to that of its peer group. The stock's forward 12-month P/S also seems stretched when compared to its five-year median value, 1.40. Image Source: Zacks Investment Research To conclude, investors interested in Boeing should wait for a better entry point, considering the stock's poor ROIC and premium valuation. BA currently has a VGM Score of F, which is also not a very favorable indicator of strong performance. However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, considering its recent share price hike, solid sales and earnings growth potential as well as upward revision in near-term earnings estimates. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report Airbus Group (EADSY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
17-04-2025
- Business
- Yahoo
Stock Market News for Apr 16, 2025
Wall Street closed lower on Tuesday as trade tensions persist and economic data loom. The Nasdaq Composite, the Dow and the S&P 500 ended in negative territory. The Dow Jones Industrial Average (DJI) fell 0.4%, or 155.83 points, to close at 40,368.96. Twenty-one components of the 30-stock index ended in negative territory, while nine ended in positive. The major loser of the Dow was the Boeing Company BA. The stock price of this aerospace and defense company fell 2.4%. Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. The tech-heavy Nasdaq Composite declined 8.32 points, or 0.1%, to close at 16,823.17. The S&P 500 lost 9.34 points, or 0.2%, to close at 5,396.63. Seven out of 11 broad sectors of the benchmark index closed in the red. The Materials Select Sector SPDR (XLB), the Consumer Staples Select Sector SPDR (XLP) and the Consumer Discretionary Select Sector SPDR (XLP) fell 0.8%, 0.8% and 0.7%, respectively. The fear gauge CBOE Volatility Index (VIX) decreased 2.5% to 30.12. A total of 15 billion shares were traded on Tuesday, lower than the last 20-session average of 19 billion. The S&P 500 posted two new 52-week highs and one new low. The Nasdaq Composite recorded 27 new highs and 95 new lows. The U.S. stock market experienced minor drops on Tuesday because investors reacted to President Trump's tariff policies, which included potential auto industry relief and new plans to tax semiconductor and pharmaceutical products. Market sentiment remained bearish because trade policy uncertainty did not decrease from the previous volatile trading days. Investors focus on the upcoming U.S. Census Bureau retail sales data because it will provide essential information about consumer strength amid rising economic slowdown concerns. The U.S. dollar increased 0.3% in value, yet it stayed close to its three-year low against the euro and its six-month low against the yen, which indicates that investors remain cautious about U.S. assets. Oil prices decreased marginally as Brent crude settled at $64.67 per barrel and West Texas Intermediate (WTI) settled at $61.33 because investors assessed the effects of the U.S.-China trade war on worldwide demand. Per the Fed's New York Empire State Manufacturing Survey, the index for April 2025 was a negative 8.1. In March, it was negative 20. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16-04-2025
- Business
- Yahoo
Stock Market News for Apr 16, 2025
Wall Street closed lower on Tuesday as trade tensions persist and economic data loom. The Nasdaq Composite, the Dow and the S&P 500 ended in negative territory. The Dow Jones Industrial Average (DJI) fell 0.4%, or 155.83 points, to close at 40,368.96. Twenty-one components of the 30-stock index ended in negative territory, while nine ended in positive. The major loser of the Dow was the Boeing Company BA. The stock price of this aerospace and defense company fell 2.4%. Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. The tech-heavy Nasdaq Composite declined 8.32 points, or 0.1%, to close at 16,823.17. The S&P 500 lost 9.34 points, or 0.2%, to close at 5,396.63. Seven out of 11 broad sectors of the benchmark index closed in the red. The Materials Select Sector SPDR (XLB), the Consumer Staples Select Sector SPDR (XLP) and the Consumer Discretionary Select Sector SPDR (XLP) fell 0.8%, 0.8% and 0.7%, respectively. The fear gauge CBOE Volatility Index (VIX) decreased 2.5% to 30.12. A total of 15 billion shares were traded on Tuesday, lower than the last 20-session average of 19 billion. The S&P 500 posted two new 52-week highs and one new low. The Nasdaq Composite recorded 27 new highs and 95 new lows. The U.S. stock market experienced minor drops on Tuesday because investors reacted to President Trump's tariff policies, which included potential auto industry relief and new plans to tax semiconductor and pharmaceutical products. Market sentiment remained bearish because trade policy uncertainty did not decrease from the previous volatile trading days. Investors focus on the upcoming U.S. Census Bureau retail sales data because it will provide essential information about consumer strength amid rising economic slowdown concerns. The U.S. dollar increased 0.3% in value, yet it stayed close to its three-year low against the euro and its six-month low against the yen, which indicates that investors remain cautious about U.S. assets. Oil prices decreased marginally as Brent crude settled at $64.67 per barrel and West Texas Intermediate (WTI) settled at $61.33 because investors assessed the effects of the U.S.-China trade war on worldwide demand. Per the Fed's New York Empire State Manufacturing Survey, the index for April 2025 was a negative 8.1. In March, it was negative 20. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
Boeing Wins Contract to Support F/A-18 Aircraft Program
The Boeing Company BA recently clinched a contract involving the F/A-18 aircraft. The award has been offered by the Naval Supply Systems Command Weapon Systems Support, Philadelphia, PA. Valued at $12.9 million, the contract is expected to be completed by March 2030. Per the terms of the deal, Boeing will be engaged in the repair of the landing edge flap antenna used on the F/A-18 aircraft. A major portion of the work related to this contract will be carried out in Mesa, AZ. The global demand for military aircraft is rising amid an increasingly volatile geopolitical landscape. Nations worldwide are thus prioritizing aerial supremacy, which forms an integral part of defending a country's border. This, in turn, is driving investments in advanced fighter jets equipped with cutting-edge technologies such as stealth capabilities, precision targeting and electronic warfare. This demand surge likely prompted the Mordor Intelligence firm to forecast a 3.7% compound annual growth rate (CAGR) for the global fighter aircraft market between 2025 and 2030, highlighting significant growth opportunities for prominent military aircraft manufacturers, such as Boeing. Notably, this American jet maker's robust military aircraft portfolio includes combat-proven models, such as the F-15, P-8, T-7A Red Hawk, E/A-18G Growler, and C-17 Globemaster III, in addition to the widely used F/A-18 Super Hornet. In particular, the F/A-18 Super Hornet remains a cornerstone of Boeing's defense business, excelling in various missions, including air superiority, precision strikes, close air support and reconnaissance. The latest Block III variant of this jet, currently in use by the U.S. military, is the most networked and survivable version to date. As Boeing continues to innovate in the defense sector through its engagement in the research, development, and production of manned and unmanned aircraft for strike, surveillance, and mobility missions, its position in the fighter jet market is further reaffirmed by its latest contract win. This contract underscores the continued demand for Boeing's military jets and associated maintenance services, reinforcing its role as a key defense contractor. Lockheed Martin Corporation LMT: It is the producer of some of the most advanced military jets in the world. The company's key jet programs are the F-35 Lightning II, F-22 Raptor, F-16 Fighting Falcon and C-130 Hercules. In particular, LMT's F-35 is currently the most lethal, survivable and connected fighter jet in the world. The company has delivered 1,102 F-35 airplanes since the program's inception, with 408 jets in the backlog as of Dec. 31, 2024. Northrop Grumman Corporation NOC: It is a leading provider of proven manned and unmanned air systems. The company builds some of the world's most advanced aircraft like the B-2 Spirit Stealth Bomber, A-10 Thunderbolt II and B-21 Raider. NOC plays the role of a principal subcontractor in the design and production of the F/A-18 E/F Super Hornet Block II aircraft. It produces the F/A-18's aft/center fuselage section and vertical tails and has delivered more than 1,800 fuselage "shipsets" since the F/A-18 program began in the 1970s. Embraer ERJ: It is another prominent manufacturer of combat aircraft with a solid presence in the global fighter aircraft market. The company's product portfolio includes the new-generation military multi-mission transport aircraft, the C-390 Millennium, and the light attack aircraft, the A-29 Super Tucano. ERJ also offers the P600 AEW&C surveillance aircraft, aircraft for special missions, such as Medevac, Training, Flight Inspection, authorities transport, aircraft modernization programs, and air traffic management and control systems. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
