Will Boeing (BA) Stock Be Helped by $8 Billion Plane Orders? - TheStreet

NEW YORK (TheStreet) -- Boeing  (BA) - Get Report stock is declining by 0.17% to $148.42 in mid-morning trading on Wednesday, after the company announced an $8 billion sale to EVAAirways.

The Seattle-based aerospace company sold 24 787-10 Dreamliners and two 777-300ER jetliners, Boeing announced on Tuesday. The deal is worth more than $8 billion at current list prices.

The sale is the largest single commercial airplane purchase in Taiwan aviation, Boeing said.

"With today's order, Boeing is proud to continue playing an integral role in revolutionizing Taiwan's aviation history as EVA becomes one of the first customers around the world to operate the 787-10," Boeing CEO Ray Conner said in a statement. 

Separately, TheStreet Ratings team rates BOEING CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

We rate BOEING CO (BA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BA's revenue growth has slightly outpaced the industry average of 1.7%. Since the same quarter one year prior, revenues slightly increased by 8.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • BOEING CO has improved earnings per share by 32.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BOEING CO increased its bottom line by earning $7.40 versus $5.97 in the prior year. This year, the market expects an improvement in earnings ($8.23 versus $7.40).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 25.1% when compared to the same quarter one year prior, rising from $1,362.00 million to $1,704.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market, BOEING CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: BA

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.