Trade-Ideas LLC identified Boeing ( BA) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Boeing as such a stock due to the following factors:
- BA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $449.3 million.
- BA has traded 1.8 million shares today.
- BA traded in a range 229.7% of the normal price range with a price range of $4.72.
- BA traded below its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. EXCLUSIVE OFFER: Get the inside scoop on opportunities in BA with the Ticky from Trade-Ideas. See the FREE profile for BA NOW at Trade-Ideas More details on BA: 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 stock currently has a dividend yield of 1.8%. BA has a PE ratio of 19.8. Currently there are 17 analysts that rate Boeing a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Boeing has been 4.9 million shares per day over the past 30 days. Boeing has a market cap of $80.0 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.03 and a short float of 1.5% with 2.24 days to cover. Shares are up 40% year to date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Boeing as a buy. The company's strengths can be seen in multiple areas, such as its 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 ratings report include:
- 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 38.53% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BOEING CO has improved earnings per share by 18.0% 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 versus $5.32 in the prior year. This year, the market expects an improvement in earnings ($6.46 versus $5.12).
- BA, with its decline in revenue, slightly underperformed the industry average of 4.3%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Aerospace & Defense industry average, but is greater than that of the S&P 500. The net income increased by 19.8% when compared to the same quarter one year prior, going from $923.00 million to $1,106.00 million.
- Even though the current debt-to-equity ratio is 1.23, it is still below the industry average, suggesting that this level of debt is acceptable within the Aerospace & Defense industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.41 is very low and demonstrates very weak liquidity.
- You can view the full Boeing Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.