Why You Shouldn’t Be Buying Boeing Stock

From Nasdaq: 2025-06-16 01:33:00

Boeing stock dropped 5% after an Air India 787 Dreamliner crash, resulting in 241 deaths. The company has faced scrutiny over quality control issues, especially with the 737 MAX fleet. At $205, Boeing is not a favorable buy due to weak financials and operating performance. Consider the Trefis High Quality portfolio for lower volatility.

Boeing’s valuation aligns with the S&P 500, with a price-to-sales ratio of 2.3 compared to 3.0 for the index. Revenue growth has been marginal, with a 4.9% average increase over three years. However, recent figures show a 9.2% decrease in revenues, indicating operational challenges.

Boeing’s profit margins are notably lower than industry peers, with negative operating income and cash flow. Financially, the company’s balance sheet appears moderately strong, but a high debt-to-equity ratio raises concerns. During market downturns, BA stock has performed worse than the S&P 500.

Overall, Boeing’s performance metrics are weak across growth, profitability, financial stability, and downturn resilience. With a very unattractive stock valuation, investing in Boeing carries significant risks. Consider diversifying with the Trefis High Quality Portfolio for better returns and lower risk compared to individual stock investments.



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