So, Boeing Co. (BA) shares are up a bit in Tuesday's premarket. It's not exactly a moonshot—we're talking about a 0.41% gain to $226—but it's moving in the right direction. And honestly, it's mostly just going along for the ride with the broader market. Nasdaq futures are up 0.48%, S&P 500 futures are up 0.40%, and when the market gets a little frisky, big cyclical names like Boeing often get a nudge. It's a classic risk-on kind of morning.
But there's more to the story than just market vibes. Let's talk about what's actually happening with the company.
Ethiopian Airlines Doubles Down on Dreamliners
In a bit of good news that didn't get lost in the weekend, Boeing and Ethiopian Airlines announced on Monday that the carrier is making its flirtation with six 787 Dreamliners official. They've converted those options into firm orders. This was part of a commitment sketched out back in 2023, and now it's real money on the table.
Ethiopian Airlines isn't just any customer; it runs the largest 787 fleet in Africa. They're planning to use these 787-9 jets to stretch their wings even further from their hub in Addis Ababa, expanding their long-haul network and boosting cargo capacity. It's a vote of confidence in the Dreamliner and in the ongoing recovery of long-distance travel. For Boeing, it's a nice, steady piece of business that keeps the production line humming.
Delivery Numbers Show Some Muscle
Ahead of its big earnings report tomorrow, Boeing put out its delivery numbers for the first quarter, and they look pretty solid. The company delivered 143 commercial aircraft, up from 130 a year ago. On the defense side, they shipped out 30 units, up from 26, including workhorses like the AH-64 Apache and CH-47 Chinook helicopters.
This isn't just bean-counting. Higher deliveries generally mean more revenue recognition is on the way, and it suggests the operational gears are turning more smoothly. It's a good setup going into an earnings call where investors will be looking for signs of execution.
The Chart Tells a Story of Strength and Pause
Let's look at the technical picture, because sometimes the chart tells you what the headlines don't. Boeing's stock is in a clear longer-term uptrend—it's up over 41% in the last 12 months, which is nothing to sneeze at. But recently, it's hit a bit of a soft patch.
The stock is currently trading about 10.5% below its 20-day simple moving average and 2.4% below its 50-day average. That suggests some near-term weakness or consolidation. However, it's still holding above its 100-day average by about 2.9%, so the intermediate-term trend hasn't broken.
The Relative Strength Index (RSI) is sitting at 59.72, which is basically in neutral territory—not overbought, not oversold. Meanwhile, the MACD indicator is above its signal line, which technical traders often read as a sign of underlying bullish momentum.
So, where to from here? Traders are eyeing two key levels:
- Key Resistance: $230.00. This is a price where the stock might run into some selling pressure. It's a psychological and technical hurdle to watch.
- Key Support: $220.00. If the stock dips, this is the level where buyers might step back in to provide a floor.
It's a classic setup: strong longer-term trend, a short-term pause, and clear levels that could dictate the next move.
All Eyes on Earnings Tomorrow
The main event is tomorrow, April 22. Boeing is scheduled to report its first-quarter earnings. Here's what the Street is expecting:
- Earnings Per Share (EPS) Estimate: A loss of 75 cents. For context, that's a deeper loss than the 49-cent loss expected previously.
- Revenue Estimate: $21.96 billion. That's up significantly from $19.50 billion a year ago, highlighting the top-line growth story.
- Valuation: The stock trades at a price-to-earnings (P/E) ratio of about 90.8x. That's a premium valuation, meaning investors are paying up for future growth expectations, not current profits.
Despite the expected loss, analysts are still broadly positive. The consensus rating on the stock is a Buy, with an average price target of $246.92. Recent analyst actions show a mix of tweaks and initiations:
- Citigroup: Maintained a Buy rating but lowered its price target to $256.00 on April 2.
- Wells Fargo: Initiated coverage with an Overweight rating and a $250.00 price target on April 1.
- Tigress Financial: Issued a Buy rating and raised its price target to $290.00 on March 19.
So, the narrative is familiar for Boeing: near-term challenges (hence the expected loss), but a longer-term growth story that keeps analysts and many investors bullish. Tomorrow's report and, more importantly, the management commentary will give us the next chapter.
For now, the stock is catching a modest bid with the market, supported by a new order, decent delivery numbers, and a chart that's taken a breather but hasn't broken down. All systems are (mostly) go as we count down to earnings.
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