Boeing Stock Gains 25% in 6 Months: Should You Buy the Stock Now?

Core Insights - Boeing's shares have increased by 25.4% over the past six months, outperforming the aerospace-defense industry growth of 20.8% and the broader aerospace sector's rise of 22% [1][8] - Other major aircraft manufacturers, such as Embraer and Airbus, have also seen significant stock price increases of 34% and 21.5%, respectively [2] Group 1: Stock Performance and Market Position - Boeing's stock performance has been driven by strong order inflows for both commercial and defense programs, as well as successful product deliveries [3] - Notable orders include 17 CH-47 Block II Chinooks from Japan Self-Defense Forces, 18 737-8 and 12 737-10 jets from Malaysia Aviation Group, and a contract from the U.S. Air Force for next-generation fighter aircraft [3][4] - Qatar Airways placed a record order for up to 210 widebody jets, including the largest order for 787 Dreamliners [4] - Boeing's successful delivery of satellites and contracts worth $2.8 billion for the Evolved Strategic Satellite Communications program have further boosted investor confidence [4][5] Group 2: Future Growth Prospects - Boeing anticipates a demand for 43,600 new commercial planes through 2044, supported by an expected annual passenger traffic growth of 4.2% over the next 20 years [6] - The defense segment has also shown strong performance, with contract awards worth $19 billion leading to a backlog of $74 billion as of June 30, 2025 [9] - The long-term earnings growth rate estimate for Boeing is 17.9%, surpassing the industry's 15.9% [10] Group 3: Sales Estimates and Earnings Projections - Boeing's third-quarter 2025 sales are projected to improve by 19.2% year-over-year, with full-year 2025 sales expected to rise by 27.8% [11] - The Zacks Consensus Estimate for sales in the current quarter is $21.27 billion, with a year-over-year growth estimate of 19.22% [13] - Despite some mixed revisions in near-term earnings estimates, the overall trend indicates a positive outlook for sales and earnings growth [12][14] Group 4: Valuation and Investment Considerations - Boeing's forward price-to-sales ratio is 1.84X, which is below the industry's average of 2.25X, indicating a potential discount [19] - However, the stock's valuation appears stretched compared to its five-year median value of 1.44 [19] - The company currently has a negative return on invested capital (ROIC), which is lower than its peers, indicating challenges in generating sufficient returns [16]