Dow Today: Boeing (BA) Lower

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading down 95.0 points (-0.7%) at 13,077 as of Thursday, Aug 23, 2012, 12:05 p.m. ET. During this time, 246.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 661.9 million. The NYSE advances/declines ratio sits at 959 issues advancing vs. 1,908 declining with 146 unchanged.

Holding back the Dow today is Boeing (NYSE: BA), which is lagging the broader Dow index with a $1.83 decline (-2.5%) bringing the stock to $70.97. This single loss is lowering the Dow Jones Industrial Average by 13.85 points or roughly accounting for 14.6% of the Dow's overall loss. Volume for Boeing currently sits at 3.9 million shares traded vs. an average daily trading volume of 4.2 million shares.

Boeing has a market cap of $55.84 billion and is part of the industrial goods sector and aerospace/defense industry. Shares are down 0.1% year to date as of Wednesday's close. The stock's dividend yield sits at 2.4%.

The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company has a P/E ratio of 12.7, below the average aerospace/defense industry P/E ratio of 12.8 and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Boeing as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, increase in stock price during the past year, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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