Short Trade Idea
Enter your short position between $238.75 (yesterday’s intra-day low) and $254.35 (the upper band of its horizontal resistance level).
Market Index Analysis
- Boeing (BA) is a member of the Dow Jones Industrial Average, the S&P 100, and the S&P 500.
- All three indices are at or near record highs but decreasing bullish trading volumes do not confirm an uptrend.
- The Bull Bear Power Indicator of the S&P 500 Index is bullish with a negative divergence.
Market Sentiment Analysis
Equity futures are rising this morning after the S&P 500 Index closed at a fresh record high, brushing aside tariffs and geopolitical tensions, while focusing solely on earnings season. The tech sector, led by AI and AI-related companies, continues to drive equity markets higher, and ASML shone in its latest earnings report. The US Federal Reserve is expected to keep interest rates on hold, but markets await guidance for 2026. On the earnings front, Microsoft, Meta Platforms, and Tesla (TSLA) will report after the market close.
Boeing Fundamental Analysis
Boeing is an aerospace and defense company that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles. It is also the most significant US exporter by dollar value.
So, why am I bearish on BA following its latest earnings release?
The Boeing Company reported revenues of $23.95 billion and earnings per share of $1.12, beating estimates of $22.60 billion and $0.39, respectively. Still, I am bearish on its weak financial health, excessive debt levels, and ongoing delivery delays amid persistent quality and production issues. I am equally bearish on margin pressures and contract risks, led by its defense segment and the KC-46 tanker program, which adds fixed-price contract losses, and rising competition from Airbus and China.
Metric | Value | Verdict |
P/E Ratio | 99.01 | Bearish |
P/B Ratio | 35.15 | Bearish |
PEG Ratio | 6.53 | Bearish |
Current Ratio | 1.19 | Bearish |
ROIC-WACC Ratio | Unavailable | Bearish |
The price-to-earnings (P/E) ratio of 99.01 makes BA an expensive stock. By comparison, the P/E ratio for the S&P 500 is 31.52.
The average analyst price target for BA is $258.44. This suggests no upside potential, while downside risks accelerate.
Boeing Technical Analysis
Today’s BA Signal
- The BA D1 chart shows price action inside its horizontal resistance zone.
- It also shows price action between its ascending 0.0% and 38.2% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator is bullish with a negative divergence, approaching a bearish crossover.
- The average bearish trading volumes are higher than the average bullish trading volumes.
- BA followed the S&P 500 higher, a bullish trading signal, but bearish factors are rising.
My BA Short Stock Trade
- BA Entry Level: Between $238.75 and $254.35
- BA Take Profit: Between $189.95 and $195.51
- BA Stop Loss: Between $261.98 and $267.22
- Risk/Reward Ratio: 2.10
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