Boeing(US:BA) ZACKSยท2025-11-10 13:46Core Insights - Boeing Company's shares have increased by 9.9% year-to-date, underperforming the Zacks Aerospace-Defense industry's growth of 32.5% [1][8] - The company is facing challenges such as labor shortages and ongoing supply-chain issues [1][3] Group 1: Challenges Faced by Boeing - Boeing is experiencing supply-chain disruptions, including shortages of engines and critical components, which are delaying aircraft deliveries and increasing production costs [3][4] - Geopolitical tensions and logistical challenges may prolong these supply constraints until the end of 2025 [4] - According to the International Air Transport Association (IATA), aircraft deliveries are currently about 30% below their previous peak, resulting in a record global aircraft backlog of 17,000 units, which negatively impacts Boeing's near-term revenue prospects [5][23] Group 2: Factors Supporting Boeing - Boeing remains a leading aircraft manufacturer in the U.S., with a 38% year-over-year growth in aircraft deliveries for Q3 2025, leading to a 49% increase in revenues for its Boeing Commercial Airplanes (BCA) segment [10][8] - The company secured 161 net commercial airplane orders in the third quarter, which is expected to enhance long-term revenue performance [11] - A new contract-and-delivery mechanism called Rapid Delivery Release (RDR) is anticipated to improve delivery times to military customers, benefiting Boeing's operational efficiency [12] Group 3: Financial Performance and Estimates - The Zacks Consensus Estimate for Boeing's earnings per share (EPS) indicates a significant decrease of 310.48% for 2025 and 34.86% for 2026 over the past 60 days [13] - Boeing's trailing 12-month return on invested capital (ROIC) is negative and below the peer group's average, indicating insufficient returns on investments [17] - Boeing's forward 12-month price-to-sales (P/S) ratio is 1.57X, which is lower than the industry's average of 2.35X, suggesting a discount in valuation compared to peers [18][19]