Price-to-Sales (P/S)
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Tap These 5 Bargain Stocks With Enticing EV-to-EBITDA Ratios
ZACKS· 2025-11-18 15:02
Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.LOCO, OPFI, EIX, SCSC and ZION are screened as value stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score.Investors are typically fixated on the price-to-earnings (P/E) strategy, while seeking stocks trading at attractive prices. This straightforward, easy-to-calculate ratio is the most preferred among all valu ...
Boeing Stock Rises 41.4% in a Year: What Should Investors Do Now?
ZACKS· 2025-10-13 15:06
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].
Boeing Stock Gains 25% in 6 Months: Should You Buy the Stock Now?
ZACKS· 2025-08-21 14:36
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]