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Dec 20, 2019
Boeing (BA, $333.51) gets credit rating downgrade from S&P, on 737 MAX uncertainty

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.

 

 

Related Ticker: BA

BA sees MACD Histogram just turned negative

BA saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on July 13, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 40 instances where the indicator turned negative. In of the 40 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on July 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BA as a result. In of 70 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

BA moved below its 50-day moving average on July 09, 2026 date and that indicates a change from an upward trend to a 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 of 62 cases within the following month. The odds of a continued downward trend are .

BA broke above its upper Bollinger Band on July 06, 2026. 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 Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

The 10-day moving average for BA crossed bullishly above the 50-day moving average on July 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 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 321 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 257 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 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 Price Growth Rating for this company is (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 (best 1 - 100 worst), pointing to slightly better 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 (best 1 - 100 worst) indicates that the company is significantly 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: P/B Ratio (28.249) is normal, around the industry mean (9.821). P/E Ratio (84.719) is within average values for comparable stocks, (88.634). BA's Projected Growth (PEG Ratio) (23.222) is very high in comparison to the industry average of (4.009). Dividend Yield (0.000) settles around the average of (0.019) among similar stocks. P/S Ratio (1.792) is also within normal values, averaging (31.062).

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 74, placing this stock worse than average.

Notable companies

The most notable companies in this group are GE Aerospace (NYSE:GE), Boeing Company (NYSE:BA), Lockheed Martin Corp (NYSE:LMT), Northrop Grumman Corp (NYSE:NOC), Virgin Galactic Holdings (NYSE:SPCE).

Industry description

Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.

Market Cap

The average market capitalization across the Aerospace & Defense Industry is 39.7B. The market cap for tickers in the group ranges from 4.49 to 1.73T. SPCX holds the highest valuation in this group at 1.73T. The lowest valued company is BDRPF at 4.49.

High and low price notable news

The average weekly price growth across all stocks in the Aerospace & Defense Industry was -6%. For the same Industry, the average monthly price growth was -14%, and the average quarterly price growth was -11%. BETA experienced the highest price growth at 5%, while DFNS experienced the biggest fall at -66%.

Volume

The average weekly volume growth across all stocks in the Aerospace & Defense Industry was 35%. For the same stocks of the Industry, the average monthly volume growth was -62% and the average quarterly volume growth was -22%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 47
P/E Growth Rating: 68
Price Growth Rating: 64
SMR Rating: 79
Profit Risk Rating: 73
Seasonality Score: 4 (-100 ... +100)
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a manufacturer of jetliners, aircraft and related products

Industry AerospaceDefense

Profile
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Industry
Aerospace And Defense
Address
929 Long Bridge Drive
Phone
+1 703 465-3500
Employees
171000
Web
https://www.boeing.com
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