Boeing (NYSE:BA) stock is trending lower on Tuesday April 15, after Bloomberg reported that China has ordered its airlines to stop accepting any more Boeing aircraft.
Boeing (NYSE:BA) stock is trending lower on Tuesday April 15, after Bloomberg reported that China has ordered its airlines to stop accepting any more Boeing aircraft. This decision appears to be a retaliatory measure in the trade war with the U.S., which has seen President Donald Trump impose tariffs of up to 145% on Chinese products.
We view Boeing stock around $160 as an unattractive investment. Despite a seemingly moderate valuation, our analysis reveals significant concerns due to the company’s weak operating performance and financial condition. This assessment is based on a comparison of its current valuation with its recent operating history and overall financial health across key areas like Growth, Profitability, Financial Stability, and Downturn Resilience, the details of which follow. That said, if you seek upside with lower volatility than individual stocks, the Trefis High-Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.How Does Boeing’s Valuation Look vs. The S&P 500?
Going by what you pay per dollar of sales or profit, BA stock looks cheap compared to the broader market.
Boeing has a price-to-sales (P/S) ratio of 1.7 vs. a figure of 2.8 for the S&P 500 How Have Boeing’s Revenues Grown Over Recent Years?
Boeing’s Revenues have fallen over recent years.
Boeing has seen its top line grow at an average rate of 3.1% over the last 3 years (vs. increase of 6.2% for S&P 500)
Its revenues have decreased 14.5% from $78 Bil to $67 Bil in the last 12 months (vs.
