Boeing Stock Rises 41.4% in a Year: What Should Investors Do Now?

Core Insights - Boeing Company's shares have increased by 41.4% over the past year, significantly outperforming the Zacks Aerospace-Defense industry's growth of 15.8, driven by rising commercial air travel and a robust defense backlog [1][8]. Group 1: Stock Performance and Market Activity - Boeing has experienced notable growth in its commercial airplanes business, with sales surging by 81% year-over-year in Q2 2025, supported by a 63% increase in delivery numbers [3]. - The company secured significant contracts, including a $173 million deal for eight MH-139A Grey Wolf helicopters for the U.S. Air Force [4]. - Notable orders include 30 Boeing 737-8 aircraft from Norwegian Group and a record order from Turkish Airlines for up to 75 787 Dreamliners and up to 150 additional 737 MAX jets [5][6]. Group 2: Revenue and Backlog - Boeing's defense segment won contracts worth $19 billion in Q2 2025, resulting in a backlog of $74 billion for this unit [11]. - The total backlog for Boeing's Global Services business unit was reported at $21.94 billion as of June 30, 2025, indicating strong future revenue potential [10]. Group 3: Financial Estimates and Growth Projections - The Zacks Consensus Estimate projects a 28.9% year-over-year increase in Boeing's 2025 sales, with a loss per share estimate improving to $2.95 from a previous loss of $20.38 [12]. - The current quarter's sales estimate is $21.38 billion, with a year-over-year growth estimate of 19.87% [13]. - Analysts have shown skepticism regarding Boeing's near-term earnings growth, as estimates have declined over the past 60 days [14]. Group 4: Valuation and Investment Considerations - Boeing's forward 12-month price-to-sales ratio is 1.7X, which is lower than the industry's average of 2.31X, indicating a potentially attractive valuation [19]. - Despite the attractive valuation, Boeing's poor return on invested capital (ROIC) and declining earnings estimates may deter new investors [21].