Boeing (BA, $333.51) gets credit rating downgrade from S&P, on 737 MAX uncertainty
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.
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BA's RSI Oscillator recovers from oversold territory
The RSI Oscillator for BA moved out of oversold territory on October 01, 2026. 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 33 similar instances when the indicator left oversold territory. In 29 of the 33 cases the stock moved higher. This puts the odds of a move higher at 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 32 of 54 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 59%.
Following a +4.04% 3-day Advance, the price is estimated to grow further. Considering data from situations where BA advanced for three days, in 213 of 320 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
BA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BA as a result. In 55 of 71 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
The Moving Average Convergence Divergence Histogram (MACD) for BA turned negative on September 16, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In 32 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
The 50-day moving average for BA moved below the 200-day moving average on September 01, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
The Aroon Indicator for BA entered a downward trend on September 28, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 11 (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 Seasonality Score of 50 (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 Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating steady 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 PE Growth Rating for this company is 79 (best 1 - 100 worst), pointing to worse than average 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 83 (best 1 - 100 worst) indicates that the company is slightly overvalued 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: BA's P/B Ratio (23.923) is slightly higher than the industry average of (6.305). P/E Ratio (66.327) is within average values for comparable stocks, (58.116). Projected Growth (PEG Ratio) (1.373) is also within normal values, averaging (2.564). Dividend Yield (0.000) settles around the average of (0.009) among similar stocks. P/S Ratio (1.675) is also within normal values, averaging (18.330).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (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 76, placing this stock worse than average.
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a manufacturer of jetliners, aircraft and related products
Industry AerospaceDefense
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