The Zacks Analyst Blog Highlights Boeing, Airbus and Embraer

For Immediate ReleaseChicago, IL – October 14, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: The Boeing Company BA, Airbus Group EADSY and Embraer SA ERJ.Here are highlights from Monday’s Analyst Blog:Boeing Stock Rises +41% in a Year: What Should Investors Do Ahead of Earnings?The Boeing Company’s shares have rallied 41.4% over the past year compared with the Zacks Aerospace-Defense industry’s growth of 15.8%, as the jet giant benefits from growing commercial air travel and solid defense backlog.Considering Boeing’s outperformance over its industry, investors might ask themselves whether this is a good time to add BA stock to their portfolio. Let's examine the factors that contributed to the share price gain and assess the stock's investment prospects to make an informed decision.What Pushed BA Stock Up?As the largest U.S. commercial aircraft manufacturer, Boeing has been witnessing notable growth in its commercial airplanes business in the form of solid delivery and order activity, which in turn has resulted in its share price appreciation. Evidently, sales from the company's Commercial Airplanes business surged 81% year over year in the second quarter of 2025, backed by a solid 63% increase in delivery numbers. Strong order activity for its defense business has also been bolstering its performance at the bourses.As far as its order activities are concerned, a few notable ones include the $173 million worth contract that Boeing clinched in October 2025, to produce eight MH-139A Grey Wolf helicopters and provide training and sustainment support services for the U.S. Air Force.In September 2025, Norwegian Group placed order for 30 of Boeing’s 737-8 aircraft. In the same month, Turkish Airlines announced the carrier’s largest-ever Boeing widebody purchase — a firm order for up to 75 787 Dreamliners. Turkish Airlines also plans to buy up to 150 additional 737 MAX jets, which would mark its biggest Boeing single-aisle order.In August, Korean Air announced its intent to purchase 103 of Boeing's fuel-efficient family of airplanes, including 777-9s, 787-10s, 737-10s and 777-8 Freighters. This order marked Boeing's largest widebody order from an Asian carrier.Can BA Stock Continue with Its Rally?During the second quarter, the company booked 455 net commercial airplane orders. Such strong order activity should continue to bolster Boeing’s commercial revenue performance over the long term, given the latest Boeing Commercial Market Outlook report projecting global demand for 43,600 new commercial planes through 2044.Boeing also forecasts a $4.7-trillion market opportunity for commercial aviation support and services between 2025 and 2044. This should bode well for its Global Services business unit over the long run, with its total backlog being $21.94 billion as of June 30, 2025.During the second quarter of 2025, the Boeing Defense, Space & Security (“BDS”) unit won key contract awards worth $19 billion, which resulted in a solid backlog amount of $74 billion for this segment as of June 30, 2025. Such a solid backlog count should continue to bolster the BDS unit’s revenues, which registered a solid year-over-year increase of 10% in the second quarter.Let’s see if BA’s near-term estimates reflect similar growth trends.BA Stock’s EstimatesThe Zacks Consensus Estimate for BA’s 2025 sales indicates a year-over-year surge of 28.9%, The loss per share estimate is pinned at $2.95, which implies a significant improvement from the year-ago quarter’s loss of $20.38. The EPS estimates for 2026 also reflect similar improving trends.However, the stock’s near-term estimates (except that for 2026) have moved south in the past 60 days, reflecting analysts’ skepticism revolving around the jet giant’s earnings growth prospects.Other prominent jet makers like Airbus Group and Embraer SA have also been benefiting from the growing air passenger traffic growth trends.The Zacks Consensus Estimate for Airbus Group’s 2025 EPS indicates a year-over-year increase of 26.9% and that for 2026 EPS suggests an improvement of 16.7%.The Zacks Consensus Estimate for ERJ’s 2026 EPS indicates a year-over-year increase of 150.4%.Risks to Consider Before Choosing BoeingWhile Boeing presents strong growth potential, it also faces key challenges that investors should weigh carefully. Despite growing air travel demand worldwide, persistent global supply-chain disruptions, especially shortages of critical parts, continue to hinder and are expected to affect the aviation industry in the rest of 2025. This remains a major risk factor for jet manufacturers like Boeing, Airbus and Embraer.Moreover, the persistent trade tensions between China and America continue to pose a threat for Boeing. Notably, as of June 30, 2025, Boeing had approximately 20 737-8 aircraft in inventory for customers in China, scheduled to be delivered by the end of this year. In case of any escalation of the trade tensions between the United States and China, the latter may refuse to take deliveries from Boeing, like it did in April 2025. This, in turn, would hurt BCA’s revenues and push up inventory cost for Boeing.BA Stock’s Poor ROICThe image below shows that BA stock’s trailing 12-month return on invested capital (ROIC) not only lags the peer group’s average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses.BA Stock Trades at a DiscountIn terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.7X, a discount to the industry’s average of 2.31X. This suggests that investors will be paying a lower price than the company's expected sales growth compared to that of its peer group.Its industry peers are also trading at a discount compared to the industry’s forward 12-month P/S. While Airbus Group is trading at forward 12-month sales of 1.99, ERJ is trading at 1.27.What Should an Investor Do?Despite holding an attractive valuation compared to its industry, Boeing’s poor ROIC and deteriorating earnings estimate movement might discourage new investors from adding this stock to their portfolio.Nevertheless, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, considering the company’s impressive near-term year-over-year sales and earnings growth projection, backed by solid backlog count. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Zacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report Airbus SE - Unsponsored ADR (EADSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks