Equity Clock

The Boeing Company (NYSE:BA) – Clock That Stock

Clock_That_Stock

The Stock

The Boeing Company (NYSE:BA) has shown to be a breakout stock on the day, having gained around 1% by 3:00pm. The uptrend was cooled, however, around noon when reports that 1,020 employees had been issued layoff notices. According to a report issued by MSN “most of the affected employees work in information technology as part of Boeing’s Engineering, Operations & Technology unit in Washington state and California, a Boeing official said. Their last day of work will be in April, with about half the layoffs occurring in Washington.” The stock declined by 1% off the days high following this news.

The financial ratios for this stock are right around ideal. Average P/E is around 22 with forward P/E closer to 15, implying future growth expectations. The stock price is at a discount to sales, now at 0.7, their return on equity is off the charts at over 42% as a five year average, and the dividend yield is higher than normal at 2.67%. The current P/E at around 34 is higher than what it should be at these levels, however with the market’s expectation of growth this key ratio should be brought back to more reasonable levels with negligible effects on share price. The fundamentals are there, even though analysts remain less than enthusiastic about this equity’s investment prospects.

Chart Courtesy of StockCharts.com

The Clock

This stock has witnessed a generous run-up as of recent that coincidentally corresponds to its period of seasonal strength. Influences in the immediate short-term are moderately negative, but the upside potential beyond this phase is large, lasting into June.

The Boeing Company (BA) 62.89

+ 1.07 (1.73%)

Seasonality Analysis

Analysis has revealed that with a buy date of October 19 and a sell date of June 16, investors have benefited from a total return of 317.93% over the last 10 years. This scenario has shown positive results in 8 of those periods.

Conversely, the best return over the maximum number of positive periods reveals a buy date of February 10 and a sell date of June 1, producing a total return over the same 10-year range of 145.84% with positive results in 10 of those periods.

The buy and hold return for the past 10 years was 57.7%.

Technical Analysis

Support 2

Support 1

Pivot Point

Resistance1

Resistance2

The Numbers

61.25

62.07

62.54

63.36

63.83

Most Recent Close:

62.89

Support/Resistance Analys

Broke Upr Resistance (2)

52-Week High:

63.40

MACD Analysis:

Positive/Increasing

52-Week Low:

28.35

MACD vs. Signal:

Bullish MA Crossover

Fib. Retracement:

~ 100%

RSI Analysis:

Bullish

50-Day MA:

58.07

Stochastic (Fast) Analysis:

Increasingly Overbought

200-Day MA:

49.73

50 vs 200-Day MA Analysis:

50-day Above 200-Day MA

High Critical Level:

61.66

Year over Year Trend:

Strongly Gaining

Low Critical Value:

58.42

Critical Level Analysis:

Broke Above Previous Tren

Average Monthly Gain:

6.0%

MFI Analysis

Below 50 Declining

Technical Rating:

Candlestick Analysis

Bullish

On a scale of 1 to 10, the higher the rating, the more appealing the investment is to buy at current levels.

Situational Analysis

Past Year

Advancing Sessions %

Return %

10-Year Average

Advancing Sessions %

Return %

Feb 18 thru Mar 20

40.9

-14.3

Feb 18 thru Mar 20

48.4

-3

Best Return: -1.1% – Sell Feb 19

Best Return: 4.8% – Sell Mar 2

Feb 18 thru May 19

55.6

18.6

Feb 18 thru May 19

52.2

7.3

Best Return: 21.8% – Sell May 8

Best Return: 11.1% – Sell Apr 26

Feb 18 thru Aug 17

51.2

18.5

Feb 18 thru Aug 17

50.7

6.8

Best Return: 40.5% – Sell Jun 8

Best Return: 21.8% – Sell Jun 11

During Equivalent Periods of Economic Recovery where Unemployment has Peaked

Following Earnings Releases

5-Period Average

Advancing Sessions %

Return %

12-Period Average

Advancing Sessions %

Return %

90 Days In

37.9

13.8

30 Days Following

50.3

-2

Best Return: 20.7% – 47 Days into Recovery

Best Return: 7.4% – Sell 16 Days Following

180 Days In

36.3

12.5

60 Days Following

50.5

1.2

Best Return: 29.1% – 100 Days into Recovery

Best Return: 11.1% – Sell 25 DaysFollowing

360 Days In

37.8

36.9

90 Days Following

50.6

Best Return: 42.6% – 323 Days into Recovery

Best Return: 13% – Sell 38 Days Following

Further Analysis

Sector:

Industrial Goods

Industry:

Aerospace/Defense – Major Diversified

According to Thackray’s 2010 Investors Guide, the seasonality for the Industrials Sector is limited to Market Perform, implying that a period of strength that would garner results greater than the correlating benchmark is non-existent. The sector is a virtual barometer of real GDP growth in the U.S. The sector moves higher when expectations for economic growth are positive and moves lower when expectations are negative.

Current Consensus Recommend:

Hold

Recommendation 1-Month Ago:

Hold

Recommendation 3-Months Ago:

Hold

Disclaimer

Analysis, comments, calculations, and opinions offered in this report, available via EquityClock.com, are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.