Boeing Co (NYSE:BA) Initiated with a Sell at Stock Traders Daily

Stock Traders Daily has initiated coverage of Boeing Co (NYSE:BA) with a sell rating.  In many ways this is a macro call but the lackluster EPS growth rate for BA plays a significant role as well.  BA is expected to have an earnings growth contraction this year, yet its PE remains about 17x.

We believe the macroeconomic risks defined primarily by the liquidity issues identified by THE INVESTMENT RATE, and the all-time-low cash to margin debt ratios on the NYSE present a case where general multiple contractions within the US Equity Market can be realized.

Sign Up for Free Trial

Logically, if general market risks increase investors will shy away from companies who have stretched valuation ratios, and given the declining (negative) growth rates and high relative PE multiple the PEG ratios for BA currently makes it look rich.

That makes BA prone to aggressive decline as the year continues.

Technical Summary

Term →Near Mid Long
Bias Strong Strong Neutral
P1 124.86 97.62 105.77
P2 128.46 114.25 125.41
P3 130.70 129.31 143.99

Long Term Trading Plans for BA

March 17, 2016, 4:24 pm ET

The technical Summary and associated Trading Plans for BA listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for BA. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

BA - (Long) Support Plan

Buy over 125.41 target 143.99 stop loss @ 125.15.
The technical summary data tells us to buy BA near 125.41 with an upside target of 143.99. This data also tells us to set a stop loss @ 125.15 to protect against excessive loss in case the stock begins to move against the trade. 125.41 is the first level of support below 130.70 , and by rule, any test of support is a buy signal. In this case, support 125.41 is being tested, a buy signal would exist.

BA - (Short) Resistance Plan

Short under 143.99 target 125.41 stop loss @ 144.25
The technical summary data is suggesting a short of BA as it gets near 143.99 with a downside target of 125.41. We should have a stop loss in place at 144.25 though. 143.99 is the first level of resistance above 130.70, and by rule, any test of resistance is a short signal. In this case, if resistance 143.99 is being tested, a short signal would exist.

BA Long Term Analysis

BA EPS Analysis

BA Dividend Chart

BA Revenue chart

BA Growth rate - Quarterly

BA Growth rate - Yearly

BA PE chart

BA PEG chart