Is Boeing Still an Investable Stock?

Author: Gary Ashton

Estimated read time: 3 minutes

Publication date: 22nd Dec 2019 12:36 GMT+1

Last week was a tough one in the history of The Boeing Company (NYSE: BA), with the company announcing in a press release that it will need to stop production of its 737 Max aircraft in January 2020 because the company already has around 400 jets in storage awaiting delivery. The 737 Max has been grounded by various aviation authorities globally for approximately ten months following two fatal crashes in Indonesia and Ethiopia in short succession.

The financial cost to the company has been substantial. In its recent 3Q19 financial statement, the company reported a $2.4 billion operating cashflow loss compared to a profit of $4.6 billion in the same quarter the year previous. 3Q19 earnings per share (EPS) were $1.45 compared to $3.58 in the same quarter a year earlier, a nearly 60% . Wall Street analysts had expected 3Q earnings per share of $2.04, resulting in a negative 28.92% earnings disappointment. Media reports that cumulative losses since the second crash have reached $9.2 billion and rising. Last week Turkish Airlines threatened to sue Boeing for the business disruption.

Using To Assess Boeing’s Stock

So, is Boeing still an investable stock? What is the best way to determine this? What tools does have to help investors make an informed decision?

Overview Page and Price Chart

An excellent place to start is with Finscreener’s overview page. Type “Boeing” into the search box in the top-middle of the page to get started. At the top right of the page is a chart of recent stock price action. Charts provided by our partner show the price history, including the significant price and high trading volume in early March 2019, around the time of the second crash. Price action since then has been widely range-bound, but each push higher, failed to get back to $400 per share. Recent price action shows the stock returning to a low price of $320 per share, but this time on increased volume, a possible sign of increased selling pressure.

Technical Indicators

For those traders or investors who understand or prefer technical analysis, clicking on “technical” at the top will take you to the technical analysis page for Boeing’s stock. Users can select different time frames on the upper left, but daily and weekly are perhaps the best. Looking at the daily time frame paints a pretty bleak picture for Boeing. The summary recommendation is “Sell,” in line with the technical indicators, while moving averages are even more bearish with a “Strong Sell” indication. Greater detail about the indicators can be found on the right-hand side of the page where users can see which indicators are providing various signals.

Fundamental Analysis with Financials, Analysts & Earnings

If users want to see the company’s annual or quarterly financial results, click on “Financials” and choose from one of three statements (income statement, balance sheet, and cash flow). Or click on “Analysts” to see what Wall Street analysts think of the stock. The consensus rating for Boeing is still a “Moderate Buy.” Finally, users can get a sense of what might happen to the company’s future earnings by clicking on “Earnings” to see current and historical Target Price History as well as the Consensus EPS Estimates Trend.

Disclaimer: The writer is an experienced financial consultant who writes for The observations he makes are his own and are not intended as investment or trading advice.