Editor's Note: Boeing is a Trifecta Stocks holding. If you own, or are thinking of owning BA, you HAVE to sign up for the FREE webinar hosted by TheStreet's fundamental expert Bryan Ashenberg and technical expert Bob Lang. Sign up now!
New York (TheStreet) -- Trifecta Stocks analysts Bryan Ashenberg and Bob Lang have maintained Boeing's (BA) top rating, despite share price fluctuations this week after the aircraft manufacturer lost a $9.5 billion Japan Airlines contract to Airbus. The U.S. government shutdown has also caused short-term concern as delays are anticipated for the delivery of jetliners to U.S. airlines.
These issues "amount to nothing more than near-term turbulence," wrote Ashenberg and Lang in an article discussing Boeing's prospects. "Record profitability levels for airlines plus an aging aircraft fleet and strong global air travel continue to create strong demand for new aircraft."
Boeing shares were 0.56% lower to $114.79, as of 3:30 p.m. New York time. Year to date, shares have risen sharply, gaining 52.4%.TheStreet Ratings team rates Boeing Co as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation: "We rate Boeing Co (BA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BA's revenue growth has slightly outpaced the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 281.82% to $3,467 million when compared to the same quarter last year. In addition, Boeing Co has also vastly surpassed the industry average cash flow growth rate of 63.71%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 64.95% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- Boeing Co has improved earnings per share by 11% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, Boeing Co reported lower earnings of $5.12 a share vs. $5.32 a share in the prior year. This year, the market expects an improvement in earnings ($6.52 vs. $5.12).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Aerospace & Defense industry average. The net income increased by 12.5% when compared to the same quarter one year prior, going from $967 million to $1,088 million.
- You can view the full analysis from the report here: BA Ratings Report
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV