The USD 69.4 support, currently tested, should allow The Boeing Company to rally again.
From a fundamental viewpoint, The Boeing Company is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 0.66 times its revenues. Furthermore, EPS estimates have been revised upward in the last few months by analysts. Nonetheless, recently, EPS estimates for the two coming years have been revised upward by analysts. This positive fact opens the way for a better evaluation of the security by investors.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 69.4 area should stop this trend and allow a technical rebound towards USD 71.6 and USD 72.9. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in The Boeing Company in order to benefit from the USD 67.25 support area. A first target price will be the USD 71.6 resistance. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of USD 71.6 would validate a bullish trend in order to aim a higher target price.
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%).