NEW YORK (TheStreet) -- Shares of Boeing
(BA) are trading sharply lower, down -2.43% to $133.91, in the last hour of trading on Wednesday.
The defeat of U.S. House Majority Leader Eric Cantor in a primary election is a blow to Boeing becasue it threatens congressional reauthorization of the Export-Import bank.
The Ex-Im Bank arranges low cost financing for foreign airlines to purchase jets, a service that Boeing said last month would support $10 billion of sales in 2014, according to Bloomberg.
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Separately, Boeing was also downgraded to "sector perform" from "outperform at RBC Capital Markets this morning.
The firm said the revision was a valuation call.
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:
- BA's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 112.21% to $1,112.00 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 44.05%.
- Compared to its closing price of one year ago, BA's share price has jumped by 38.91%, exceeding the performance of the broader market during that same time frame. 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's earnings per share declined by 11.1% 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 increased its bottom line by earning $5.97 versus $5.12 in the prior year. This year, the market expects an improvement in earnings ($7.65 versus $5.97).
- The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.38 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full analysis from the report here: BA Ratings Report
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