Boeing's share price was heavily penalized in the past but now the oversold situation is expected to lift the stock higher.
According to latest earnings release, the group upbeat estimates on net incomes by 15% where main movers were China and Canada, that's an increase of 50% in EBT. Estimates on margins are promising and could be crucial for translating better sales volumes into higher earnings. Company’s yield remains at fair levels, while the P/E ratio seems not inflated; this may lure investors willing to open long positions on the aircraft maker as EPS revisions are still optimistic.
Technically, the equity got oversold on recent sessions, situation that could provide traders with an interesting entry point as shares becomes cheaper. Weekly moving averages keep their positive orientation in the long term and the bottom ascending trend line also does. The accumulation area between USD 127 and USD 132.8 represents a key level as it should determine whether the positive trend is likely to extend in the midterm or not.
Therefore, a long position can be taken at the current price, aiming at USD 144, meaning a potential of 13% over current prices. Nonetheless, a stop-loss should be considered under USD 121.4.
The Boeing Company is the worldwide leader in aeronautical construction. Net sales (including intragroup) break down by market as follows:
- commercial aviation (43.5%). In addition to commercial aircraft, the group supplies spare parts and offers technical support, maintenance and engineering services;
- defense, space and security (32%): military aircraft and mobility systems (warplanes, helicopters, and air defense missiles), support services (logistics, engineering, maintenance and training services) and space equipment (satellites, launch pads, etc.).
The remaining sales (24.5%) are from services (logistics and supply management, engineering, maintenance, modification and training services, etc.), and commercial and private aircraft financing as well as aircraft equipment leasing activities.
Net sales are distributed geographically as follows: the United States (58.4%), Europe (13.5%), Asia (12.9%), Middle East (8.5%), Oceania (2.1%), Canada (1.6%), Africa (1.1%) and other (1.9%).