Airbus beats Boeing (BA, $370.46) to secure $35 billion China deal
Dealing a fresh blow to Boeing, who has been grappling with the grounding of its best-selling jet 737 Max, its arch and biggest rival Airbus announced on Monday that the company has secured a $35 billion jet deal from China.
Signed during the recent French capital visit of the Chinese President Xi Jinping, according to the terms of the deal, Toulouse-based Airbus is likely to supply 300 passenger jets to Chinese airlines.
In an official statement, Airbus has confirmed that it had signed an agreement with China Aviation Supplies Holding Company, covering the purchase by Chinese airlines of Airbus aircraft including 290 A320-series narrow-body planes and 10 A350 XWB wide-body jet.
Airbus’s Commercial Aircraft President, Guillaume Faury, said in a statement that the company "is honored to support the growth of China's civil aviation with our leading aircraft families - single-aisle and wide-bodies."
The mammoth order for Airbus is likely to be a big blow for Boeing, as it contrasts starkly with its continuing 737 Max problems. Boeing’s bestselling jetliner has been grounded and idled across the world after being involved in two deadly crashes in less than five months. China was the first country to ground the 737 Max earlier this month following the crash of an Ethiopian Airlines flight.
BA's Stochastic Oscillator sits in overbought zone for 20 days
The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 13 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BA broke above its upper Bollinger Band on November 20, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 31, 2023. You may want to consider a long position or call options on BA as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
BA moved above its 50-day moving average on November 10, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for BA crossed bullishly above the 50-day moving average on November 14, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BA advanced for three days, in of 278 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 201 cases where BA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.818). P/E Ratio (0.000) is within average values for comparable stocks, (295.429). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.594). Dividend Yield (0.000) settles around the average of (0.028) among similar stocks. P/S Ratio (1.771) is also within normal values, averaging (165.309).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock worse than average.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of jetliners, aircraft and related products
Industry AerospaceDefense
BA and
Correlation & Price change
A.I.dvisor indicates that over the last year, BA has been loosely correlated with ERJ. These tickers have moved in lockstep 59% of the time. This A.I.-generated data suggests there is some statistical probability that if BA jumps, then ERJ could also see price increases.