Boeing (BA, $364.32) loses $6 billion order
The Boeing 737 trouble doesn’t seem to be ending, as Indonesia’s national airline handed Boeing its first official order cancelation following two deadly crashes in recent months.
Indonesian airline, Garuda, on Friday publicly announced it has told Boeing that it wishes to cancel its multibillion-dollar order for Boeing's 737 Max 8 passenger jet, citing that its passengers had lost confidence in the model after two deadly crashes in five months.
According to Garuda, it already sent a letter to Boeing on March 14, seeking to cancel the pending delivery of its 2014 order of 50 planes, of which just one had been delivered so far.
Estimated to be worth $4.9 billion, the cancelled order is the latest blow to Boeing over the 737 Max - its bestselling passenger jet.
The plane has been grounded by many authorities across different countries like U.S., Europe, China and Indonesia, but it's the first airline to say it's canceling a 737 Max 8 order.
Garuda spokesperson Ikhsan Rosan told news agencies that it is difficult to cancel such agreements once they have been signed, but with passengers losing confidence to fly with the Max 8, there wasn’t much of an option.
Overall, more than 4,000 737 Max planes are on order by airlines around the world. Boeing’s stock dropped about 12% since the Ethiopian Airlines crash, and was down more than 2% in Friday trading.
BA in upward trend: price rose above 50-day moving average on November 27, 2024
BA moved above its 50-day moving average on November 27, 2024 date and that indicates a change from a downward trend to an upward trend. In of 49 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 25, 2024. 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 .
The Moving Average Convergence Divergence (MACD) for BA just turned positive on November 22, 2024. Looking at past instances where BA's MACD turned positive, the stock continued to rise in of 35 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for BA crossed bullishly above the 50-day moving average on December 04, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 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 288 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 184 cases where BA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 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 December 12, 2024. 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.
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 (8.271). P/E Ratio (0.000) is within average values for comparable stocks, (56.258). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.342). BA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.016). P/S Ratio (1.511) is also within normal values, averaging (7.991).
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 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.
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a manufacturer of jetliners, aircraft and related products
Industry AerospaceDefense