The USD 70.35 support area, currently tested by The Boeing Company, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.67. Since February, the earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at 4.7 USD for this year and 5.59 USD for the next year, The Boeing Company is currently paid 15.12 and 12.73 times the results.
Currently the stock is oversold and in the short term, this trend is reversed upon contact with the USD 70.3 area. The Boeing Company should be able to confirm its increase in the next trading sessions. The USD 70.35 support is a trading opportunity in order to anticipate a technical rebound towards USD 73.05 and by extension towards USD 77.30.
Thanks to technical pattern and company’s strong fundamentals, active investors can take a long position above USD 70.35. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The goals will be fixed at USD 77.3 in a first time and then at USD 77.3. However, a bearish trend would regain the upper hand if the security crosses downward current level.
The Boeing Company is the worldwide leader in aeronautical construction. Net sales (including intragroup) break down by market as follows:
- commercial aviation (43.5%). In addition to commercial aircraft, the group supplies spare parts and offers technical support, maintenance and engineering services;
- defense, space and security (32%): military aircraft and mobility systems (warplanes, helicopters, and air defense missiles), support services (logistics, engineering, maintenance and training services) and space equipment (satellites, launch pads, etc.).
The remaining sales (24.5%) are from services (logistics and supply management, engineering, maintenance, modification and training services, etc.), and commercial and private aircraft financing as well as aircraft equipment leasing activities.
Net sales are distributed geographically as follows: the United States (58.4%), Europe (13.5%), Asia (12.9%), Middle East (8.5%), Oceania (2.1%), Canada (1.6%), Africa (1.1%) and other (1.9%).