What's Happening With Boeing Stock?
AVALON, VICTORIA, AUSTRALIA - 2025/03/25: The logo of Boeing, an American civil and military ... More aviation brand, is seen displayed. (Photo by Alexander Bogatyrev/SOPA Images/LightRocket via Getty Images)
Boeing (NYSE:BA) stock is trending lower on Tuesday April 15, after Bloomberg reported that China has ordered its airlines to stop accepting any more Boeing aircraft. This decision appears to be a retaliatory measure in the trade war with the U.S., which has seen President Donald Trump impose tariffs of up to 145% on Chinese products.
We view Boeing stock around $160 as an unattractive investment. Despite a seemingly moderate valuation, our analysis reveals significant concerns due to the company's weak operating performance and financial condition. This assessment is based on a comparison of its current valuation with its recent operating history and overall financial health across key areas like Growth, Profitability, Financial Stability, and Downturn Resilience, the details of which follow. That said, if you seek upside with lower volatility than individual stocks, the Trefis High-Quality portfolio presents an alternative - having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
Going by what you pay per dollar of sales or profit, BA stock looks cheap compared to the broader market.
Boeing's Revenues have fallen over recent years.
Boeing's profit margins are considerably worse than most companies in the Trefis coverage universe.
Boeing's balance sheet looks fine.
BA stock has fared much worse than the benchmark S&P 500 index during some of the recent downturns. Worried about the impact of a market crash on BA stock? Our dashboard How Low Can Boeing Stock Go In A Market Crash? has a detailed analysis of how the stock performed during and after previous market crashes.
In summary, Boeing's performance across the parameters detailed above are as follows:
Despite its seemingly low valuation, we maintain our view that Boeing's stock is unattractive and not a good investment. This stance is further supported by ongoing tariff issues and China's recent retaliatory measures, which include instructing Chinese airlines to cease accepting Boeing aircraft deliveries. These factors are expected to negatively impact the company's stock price in the near term.
While you would do well to avoid BA stock for now, you could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
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