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 saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 09, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 32 instances where the indicator turned negative. In of the 32 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 04, 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 April 15, 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 RSI Indicator shows that the ticker has stayed in the oversold zone for 7 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 Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 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.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BA advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
BA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call 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 (6.558). P/E Ratio (0.000) is within average values for comparable stocks, (34.899). BA's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.974). BA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.017). P/S Ratio (1.326) is also within normal values, averaging (4.534).
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
Industry AerospaceDefense