Boeing Co, a major player in the aerospace and defense industry, operates through three primary segments: commercial airplanes, defense, space, and security, and global services. The company competes with Airbus in the commercial segment and with defense contractors like Lockheed Martin and Northrop Grumman in the defense sector. Boeing’s market capitalization stands at approximately $160.37 billion, positioning it as a significant entity within the Industrials sector, specifically in the Aerospace & Defense industry.
Financial Health Analysis
Boeing’s financial performance has been under pressure, as evidenced by several key metrics:
The company’s balance sheet reveals further concerns:
Warning signs include an Altman Z-Score of 1.24, placing Boeing in the distress zone, and a Piotroski F-Score of 3, indicating poor business operations. However, the Beneish M-Score suggests that the company is unlikely to be manipulating its financials.
Valuation & Market Sentiment
Boeing’s valuation metrics provide mixed signals:
Analyst sentiment remains cautiously optimistic, with a target price of $258.88 and a recommendation score of 1.8, suggesting a moderate buy. Technical indicators such as the RSI of 30.87 indicate that the stock is approaching oversold territory, while moving averages suggest potential resistance levels.
Institutional ownership is robust at 87.39%, reflecting confidence from large investors, although insider activity shows a balance of buying and selling over the past year.
Risk Assessment
Boeing’s financial health grades highlight several risks:
- The Altman Z-Score indicates potential financial distress.
- Sector-specific risks include geopolitical tensions and competition from Airbus.
- The stock’s beta of 1.56 suggests higher volatility compared to the market.
Investors should consider these factors alongside upcoming catalysts, such as potential new contracts and strategic partnerships, which could influence Boeing’s future performance.
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