Boeing (BA, $375.66) may suffer further following allegations of poor production
The New York Times launched an investigation into a Boeing manufacturing facility at North Charleston, South Carolina -- and the findings are alarming. Following interviews with dozens of current and past employees, as well as reviewing hundreds of corporate documents, the report reveals that this manufacturing facility has been prioritizing production speed over quality -- thereby creating potential safety hazards.
Boeing workers had filed numerous complaints with the federal government regarding poor manufacturing processes, tools and debris being left on plane, installation of faulty parts in planes at the facility, undertaking test flights with engine or tail compromised, and pressure on the employees not report regulatory violations to authorities.
Boeing has denied such allegations claiming that the facility is committed to producing top-quality Dreamliners. According to the newspaper report, this claim is substantiated by the fact that Qatar Airways had rejected that particular Boeing facility due to its manufacturing issues, opting instead to buy its Dreamliners from a different facility since 2014.
These allegations may prove to be further detrimental for the facility’s reputation, as it is already facing investigations including a federal criminal probe into the certification process of Boeing 737 Max following two deadly crashes of the aircraft, one with the Ethiopian Airlines and another in Indonesia.
BA in -2.91% downward trend, sliding for three consecutive days on October 28, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where BA declined for three days, in of 330 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 58 cases where BA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
BA broke above its upper Bollinger Band on October 21, 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 Aroon Indicator for BA entered a downward trend on October 18, 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 16, 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 September 27, 2024. Looking at past instances where BA's MACD turned positive, the stock continued to rise in of 36 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 286 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 (7.141). P/E Ratio (0.000) is within average values for comparable stocks, (44.496). BA's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.790). BA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.015). P/S Ratio (1.263) is also within normal values, averaging (4.176).
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 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 68, placing this stock worse than average.
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General Information
a manufacturer of jetliners, aircraft and related products
Industry AerospaceDefense