Wall Street Bets Boeing Stock Is Making a Comeback
Market forces often act like a pendulum, swinging from bullish to bearish again with each cycle. This principle applies to broader indexes like the S&P 500 or Nasdaq-100 and individual stocks. In the aerospace sector, one stock has been stuck on the bearish side of the swing for some time, making it overdue for its shift into a prolonged bullish phase.
Since breaking out of its tight $180 per share range, Boeing Co. (NYSE: BA) has entered a longer-term bullish trend, supported not only by improved sentiment but also by its recovering fundamentals. The company has survived numerous adverse media reports and incidents that once painted it as a toxic asset. Still, now everyone wants a piece of Boeing.
Be it from the current trade tariff deals across the global economy or the importance of transportation and defense spending on the part of the United States, investors now have to decide whether it is too late to join Boeing in its recent momentum or if there is more to see from this party. It is much more like the latter for the following reasons.
Boeing’s Earnings Still Have More to Give
Even after a quarterly rally of 14.3%, defying all bears and doubters, Boeing stock still has much more to offer, even as it trades near a new 52-week high price. This is the price action that institutional momentum long-only buyers love to see.
Still, as always, they need a financial justification for this.
This is precisely where Boeing’s earnings come into play. According to the most recent quarterly announcement, the company reported a net loss of $1.24 per share, exceeding the market's expectation of 92 cents in losses. Despite this wider-than-expected net loss, the market seemed unfazed.
Investors should remember that markets are forward-looking, so the recent earnings miss may not be as severe as the broader market expects from this company.
By the first quarter of 2026, Wall Street analysts expect Boeing to report a much better 53 cents in earnings per share (EPS), a significant improvement from today’s net losses. This expectation and financial momentum could justify Boeing stock breaking out of its previous range. Still, now there is a more important question at hand.
Has Boeing priced in this future growth? This is where the price-to-earnings-growth (PEG) ratio comes in handy, as it answers that very question. Any multiple below 1.0x indicates that not all potential EPS growth has been fully priced. At only 0.5x, Boeing has 50% more growth to price in compared to its current trading price.
The Market Likes Boeing’s Setup
Understanding this fundamental truth in valuation logic, some institutional buyers (the smart money) decided to take action before this opportunity faded. This is why $2.8 billion worth of buying took place as of the most recent quarter, showing investors how optimistic these institutions are about Boeing’s future.
More than just the institutional side of the equation, investors can look to what Wall Street analysts think of Boeing aside from their EPS forecasts. While the consensus view for Boeing is of a Moderate Buy and a $228.9 per share valuation (pricing in 2.7% downside), others see the stock for what it truly could be.
UBS Group analyst Gavin Parsons sees Boeing as more of a Buy valued at $280 per share to call for an additional rally of 20% from where it trades today, not to mention break into a new 52-week high while at it. This view closely matches other recent upgrades from the Royal Bank of Canada and Bank of America, so it’s not far from reality.
Perhaps one of the reasons for this renewed optimism, sending Boeing’s pendulum swinging back into a bullish area, is the fact that the company has recently received additional jet orders from major carriers across the world, which also acts as another vote of confidence in the company taking care of its manufacturing misfires, causing incidents in the past.
This alone should open the floodgates for more orders from the commercial and defense sides of the equation. This would make those Wall Street EPS forecasts more probable than they seem today and something for investors to consider moving forward.
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