Boeing Company (BA)

[DiscoverGold]

The Boeing Company (BA) Fallen Stock No One Should Touch Right Now
By: Stock News | July 28, 2022

Despite the Federal Reserve’s three interest rate hikes to combat inflation this year, the Consumer Price Index (CPI) hit a multi-decade high of 9.1% last month. After another 75 basis-point rate hike yesterday for the second straight month, the central bank is expected to increase rates further. Therefore, a recession looks unavoidable.

The U.S. economy contracted at a 0.9% annual rate in the second quarter after a 1.6% decline in the first quarter, making many analysts believe that a recession has arrived. Moreover, an unexpected decline in global business activity and a sudden rise in weekly jobless claims are expected to keep the market highly volatile in the upcoming weeks.

Amid this backdrop, low profitability, weak financials, and unfavorable analyst estimates make shares of The Boeing Company (BA), Archer Aviation Inc. (ACHR), Beyond Meat, Inc. (BYND), Carvana Co. (CVNA), and fuboTV Inc. (FUBO) risky investments. These stocks could keep losing in the near term.

The Boeing Company (BA)

BA designs, manufactures, and sells commercial jetliners, military aircraft, satellites, missile defense systems, human space flight, and launch systems and services worldwide. It operates through Commercial Airplanes (BCA); Defense, Space & Security (BDS); Global Services (BGS); and Boeing Capital (BCC) segments. It has a 1.37 beta.

On July 21, 2022, BA debuted the first P-8A Poseidon aircraft for New Zealand in its Royal New Zealand Air Force (RNZAF) livery as their new multi-mission maritime patrol aircraft.

The four Boeing P-8A Poseidon aircrafts purchased by the New Zealand Government will replace the current fleet of six aging P-3K2 Orion aircraft and offer advanced capabilities to maintain situational awareness in neighboring waters on and below the surface of the ocean. This should help BA nurture its relationship with the Government.

For fiscal second quarter ended June 30, 2022, BA’s total revenues decreased 1.9% year-over-year to $16.68 billion. The company’s non-GAAP operating earnings came in at $490 million, representing a 35.1% year-over-year decline.

Its net earnings came in at $160 million for the quarter, down 71.8% from the year-ago period. BA’s non-GAAP loss per share came in at $0.37, versus a $0.40 EPS in the prior-year period. As of June 30, 2022, the company had $10.09 billion in cash and cash equivalents.

Analysts expect a negative EPS estimate for fiscal 2022 ending December 31, 2022. It missed Street EPS estimates in each of the trailing four quarters.

Its trailing-12-month ROTC and ROA have been negative compared to their positive industry averages. The stock has lost 22.5% year-to-date and 1.3% over the past week to close the last trading session at $156.09, down 35.3% from its 52-week high of $241.15.

BA’s POWR Ratings reflect this bleak outlook. The stock has an overall rating of D, which equates to Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

It has an F grade for Growth and a D for Stability, Quality, and Sentiment. Click here to see the additional ratings for BA’s Value and Momentum. BA is ranked #62 of 76 stocks in the C-rated Air/Defense Services industry.

Read Full Story »»»

DiscoverGold