The Boeing Company’s BA shares have risen 7.4% year to date compared with the Zacks Aerospace-Defense industry’s growth of 7%. The government’s inclination toward strengthening the nation’s defense and space system should act as a growth catalyst for Boeing.
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Shares of other defense stocks, such as Lockheed Martin LMT and RTX Corporation RTX, have gained 23.6% and 21.9%, respectively, during the same time frame. Lockheed Martin’s record backlog, expanding munitions capacity and alignment with U.S. and allied defense priorities support durable growth. RTX’s strong backlog and new awards provide multi-year production visibility, while higher output, backlog conversion and favorable program mix are expected to support continued defense growth.
Considering Boeing’s outperformance relative to its industry, investors may be wondering whether now is a good time to add the stock to their portfolios. Let’s examine the factors that have driven the share price gains and assess the company’s investment prospects to make a more informed decision.
Tailwinds for BA Stock
Over decades, Boeing has built deep relationships with airlines, aircraft lessors, governments and defense customers, creating a broad installed base that generates recurring demand for maintenance, spare parts, pilot training and fleet upgrades. Its extensive product portfolio, particularly the 737 narrow-body family and the 787 Dreamliner wide-body aircraft, helped the company secure a strong position across major airline segments.
In the second quarter of 2026, Boeing Commercial Airplanes (“BCA”) delivered 171 airplanes, up 14% year over year and the highest quarterly total since 2018. Segment revenues increased 8% to $11.75 billion. Boeing booked 246 net commercial orders in the quarter and ended with a record $597 billion BCA backlog. The 737 program began transitioning production to 47 airplanes per month, and Boeing activated low-rate initial production on the North Line in July 2026.
The U.S. Navy MQ-25A Stingray completed its first flight and received Milestone C, clearing the program for low-rate initial production. The U.S. Air Force T-7A Red Hawk also achieved Milestone C and began low-rate initial production. Boeing reached a memorandum of agreement with the Air Force on KC-46A mission readiness and the Remote Vision System 2.0 retrofit, with the first phase of flight testing completed.
On Aug. 11, Wojskowe Zak??ady Lotnicze Nr 1 S.A. (WZL-1), the Military Central Bureau of Design and Technology S.A. and Boeing signed offset implementation agreements to establish long-term industrial cooperation supporting the maintenance and ground support of Poland’s AH-64E Apache helicopter fleet. Boeing can benefit from this agreement through its defense and services businesses, as Poland’s Apache fleet creates a long-term opportunity for maintenance, repair, overhaul, training and modernization.
Key Headwinds Facing BA Stock
The order book is growing, but slow production, delayed deliveries and ongoing inspections could be turning customers away from Boeing’s commercial airplanes, leading to recent order cancellations. Aircraft order cancellations during the six months ended June 30, 2026, totaled $2.78 billion and were primarily related to 737 aircraft. The 777X program has suffered repeated postponements and significant cost overruns.
The Boeing 777X program is running seven years late with an expected entry-level service date in 2027. These delays, caused by rigorous FAA scrutiny, design changes and part cracks, have resulted in significant cost overruns. Also, ongoing trade tensions between the United States and China pose another challenge. Any escalation in trade disputes could delay these deliveries, hurting revenues and increasing inventory costs.
Estimates for BA Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates a year-over-year improvement of 91.73%.
Image Source: Zacks Investment Research
The consensus estimate for Lockheed Martin’s 2026 EPS calls for year-over-year growth of 31.3%. The Zacks Consensus Estimate for RTX’s 2026 EPS implies a year-over-year rise of 14.8%.
BA’s Earnings Surprise History
The company beat on earnings in one of the trailing four quarters and missed in the other three, delivering an average negative surprise of 113.46%.
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BA Stock’s Liquidity
The company’s current ratio is 1.14 compared with the industry’s average of 1.12. The ratio of more than one suggests a healthy liquidity position where the business can meet its immediate financial obligations without selling long-term assets.
Image Source: Zacks Investment Research
BA Stock Trades at a Discount
In terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.73X, a discount to the industry’s average of 2.67X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.
Image Source: Zacks Investment Research
Conclusion
Boeing’s strong commercial aircraft franchise, growing defense production and expanding long-term sustainment partnerships are strengthening its recurring revenue potential and reinforcing future growth across both commercial and defense markets.
Considering current execution challenges, new investors should wait and look for a better entry point. Investors who already own this Zacks Rank #3 (Hold) stock may consider retaining it, given the company’s price performance, strong earnings growth and solid liquidity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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