Last week Airbus announced the termination of A380 jumbo jet production by 2021, in favor of smaller wide bodies such as Boeing 787 Dreamliner that could enable airlines operate more point-to-point routes bypassing the most congested hubs.
However, there can still be a market for large wide body aircrafts if they can offer a unit cost advantage over their smaller counterparts. Boeing’s new 777X aircraft family, an updated version of Boeing’s highly successful 777, that will hit the market next year is likely to dominate it.
Its new wing and state-of-the-art engines will guarantee additional range and better fuel efficiency. Customer base would comprise the same as A380, which is, Emirates, Qatar, Etihad, Singapore Airlines and Lufthansa with Emirates being the most dominant customer with 150 firm orders. Emirates is also contemplating an additional order of 20 777Xs likely to replace the airline’s existing 250 777-300ERs and A380s in its fleet by 2030.
With A380s being out of production, coupled with the fact that the existing ones would be retired soon by most customers, 777X has a genuine shot at getting new orders from Qantas, Turkish Airlines, and some of the big airlines in East Asia.
The RSI Indicator for BA moved out of oversold territory on April 25, 2024. 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 34 similar instances when the indicator left oversold territory. In of the 34 cases the stock moved higher. This puts the odds of a move higher at .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 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 .
The Momentum Indicator moved above the 0 level on May 01, 2024. You may want to consider a long position or call options on BA as a result. In of 82 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 April 26, 2024. Looking at past instances where BA's MACD turned positive, the stock continued to rise in of 33 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 288 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.
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 May 01, 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 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 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 (6.678). P/E Ratio (0.000) is within average values for comparable stocks, (35.033). BA's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.906). BA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.017). P/S Ratio (1.365) is also within normal values, averaging (4.627).
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