Boeing Stock Faces Off With $200 Ahead of Earnings

Digging into BA's fundamentals ahead of earnings

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Boeing Co. (NYSE:BA) has been one the most heavily impacted by the Covid-19 pandemic. The worldwide travel restrictions have caused an incredible decrease in demand for Boeing products. As a result, the company’s revenue has fallen by about $16 billion and its net income by nearly $4 billion in just the past year.

As for the stock, BA is already down 5% on the year and has taken a 37% haircut in the last 12 months. While the shares are well off their March 18 seven-year lows of $89, they're also a ways off their Feb. 12 annual high of $349.95. The good news? BA's $200 level has emerged as support in recent months.

BA Stock Chart

The aerospace giant steps into the earnings confessional before the market opens tomorrow, Jan. 27. Boeing beat analysts' expectations on just one of its four earnings reports released 2020. For the fourth quarter of 20219, Boeing missed Wall Street's expectations by a jaw-dropping margin of $3.80, reporting a loss of -$2.33. For the first quarter of 2020, they missed earnings expectations by a margin of $0.09. The company reported a loss of -$4.79 and missed analyst expectations by an incredibly wide margin of $2.25 for the second quarter of 2020. Finally, for the third quarter of 2020, Boeing reported a loss of -$1.39 per share that beat expectations by a decent margin of $1.13.

As far as options are concerned, even with earnings looming BA's Schaeffer's Volatility Index (SVI) of 50% sits in just the 13th annual percentile, revealing low volatility expectations are being priced into near-term contracts -- a boon to potential premium buyers. Plus, the stock has consistently rewarded premium buyers over the past year, per its Schaeffer's Volatility Scorecard (SVS) reading of 80 out of a possible 100. This shows the equity has tended to make larger-than-expected moves on the chart, compared to what the options market has priced in.


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