S&P Global Ratings lowered its long-term issuer credit rating on Boeing, due to uncertainty about when the timing of 737 MAX jetliner’s return to service.
S&P downgraded its rating on Boeing to A-minus from A, and also lowered the short-term rating to A-2 from A-1. The rating agency cited uncertainty over when the 737 MAX will return to service, the risk to the supply chain from the planned production halt, and possible long-term impact to Boeing's competitive position as factors behind the downgrade.
In March, the 737 MAX was grounded following two fatal crashes. On Monday, Boeing said it would cease production of the 737 MAX in January as the aircraft model’s return to flight faces delays .
S&P indicated that the supply chain for the MAX is global and very complex – something that could potentially make halting and restarting costly and challenging.
S&P said it could boost its rating on Boeing in the next two years if the aircraft manufacturer resumes MAX deliveries and works down the backlog of MAX aircraft built during the grounding. Boeing would also have to ramp up production to 57 a month, reduce debt used to support liquidity during the grounding, avoid large order cancellations or a substantial loss in share in the narrow-body market, and ensure that the MAX production halt does not materially disrupt the supply chain.
The RSI Oscillator for BA moved out of oversold territory on January 26, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In of the 31 cases the stock moved higher. This puts the odds of a move higher at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 61 cases where BA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BA just turned positive on February 02, 2024. Looking at past instances where BA's MACD turned positive, the stock continued to rise in of 33 cases 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 289 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on March 01, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BA as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for BA entered a downward trend on March 04, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 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 (4.826). P/E Ratio (0.000) is within average values for comparable stocks, (285.894). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.609). Dividend Yield (0.000) settles around the average of (0.025) among similar stocks. P/S Ratio (1.562) is also within normal values, averaging (165.919).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 71, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of jetliners, aircraft and related products
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.