Boeing stock traded 1.45% lower at $122.72 in the after-hours session on Friday. Is Boeing stock a good buy for the short or long term investment?

Boeing stock price (NYSE:BA) traded down more than 6% on Friday after the company said it is offering early retirement and buyout packages to its workforce. This move by the company is the clear sign that the aerospace giant believes the travel slowdown caused by the coronavirus pandemic is likely to last beyond the outbreak.

Boeing stock traded 1.45% lower at $122 mark in the after-hours session on Friday. The coronavirus pandemic has badly impacted the entire aerospace manufacturing industry. Boeing is asking $60 billion in government aid. The recently passed CARES Act by the US government will provide $2 trillion relief package to COVID-19 impacted businesses. The act has provisions to help the aviation industry as well.

Boeing gets its revenues from these four sectors:

  • Commercial Airplanes – 49%.
  • Defense, space and security Systems – 30%
  • Global Services – 21%
  • Boeing Capital corporation – 1%.

Last year was an absolute shock for Boeing after the newest version of it’s best selling airliner had crashed twice in less than six months which resulted in the grounding of planes. This caused current customers to halt any new orders. The current scenario clearly clearly signifies that the company is in major trouble.

Is Boeing stock a good buy now? Investors should look at the fundamentals and technicals of the company before buying the stock of the company.

Boeing Stock Fundamental Analysis

Boeing earnings-per-share growth has averaged -1.91 over the past 1 year. In Q4 2019, Boeing shows a loss of $2.33 per share from a profit of $5.48 a share a year ago.

The revenue of the company has contracted by 3% on average over the past three years. In Q4 2019, the top line fell 37% to $17.91 billion while sales in the Aerospace & Defense industry fell only by -8.84%. Also, the commercial airplane unit revenue dropped by 67% to $7.5 billion as deliveries fell 67% to 79 aircraft.

Weak Q4 2019 sales in the Aerospace & Defense industry and within the Capital Goods sector was reflected in Boeing Co results which underperformed the overall market.


Boeing Stock Technical Analysis

The Relative Strength Index (RSI-14) indicator of the Boeing stock is at 34.32 range. This indicates that the stock gets into the oversold zone. In order to check a bigger trend for Boeing stock, a 14-day RSI can fell short and considered as a short-term indicator. In this case, Simple Moving Average of a stock can also be an important element to look in addition to RSI.

The share price of Boeing is currently down -18.96% from its 20 days moving average and trading -50.66% down the 50 days moving average. The stock price has been seen underperforming from its 200 days MA with -62.11%.

Bottom line: Boeing stock is not a buy.

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