The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.

Boeing looks like a company with recovering revenue and capital, but with a very expensive valuation and still weak operating profit conversion. P/E of 67.7 and P/B of 24.3 are noticeably above the industry median, which leaves little room for further multiple expansion and rather calls for a risk discount. P/S of 1.55 is only slightly above the industry, but this does not compensate for the weakness in earnings and the balance sheet. P/FCF is zero, which usually indicates the absence of sustainable free cash flow and is a serious limitation on valuation. Debt burden remains high: debt/equity of 6.76 and long-term debt of $41.3 billion, with a current ratio of 1.14 and a quick ratio of 0.33, show vulnerable liquidity. At the same time, cash on hand of about $20.0 billion and growth in equity to $6.1 billion are important positives that reduce the risk of an immediate stress scenario. Profitability remains weak relative to the industry: ROA of 1.29 and ROI of 4.51 are below the median, while net profit margin of 2.22 and operating margin of 4.89 also look modest. ROE of 89.8 looks very strong, but against the backdrop of a thin equity base and high leverage, this figure should not be interpreted as a fully sustainable advantage. EPS remains negative, and forecast EPS is also negative, which suggests profitability has not yet become stable. Revenue remains at a high level and has generally recovered, but gross margin of 4.68 and gross profit do not show enough strength for confident margin expansion. Operating income and EBITDA are positive, but their scale is still insufficient to justify a premium valuation. There are no dividends, so shareholder returns depend entirely on business revaluation rather than current payouts. Overall, the fundamentals support a cautious approach: the company shows signs of stabilization, but high valuation, weak liquidity, and low profitability limit the upside potential for the target price.

Boeing Company (The)

Средний индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Medium index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

Strong index, significantly down. Outflow of funds from longs at a high level.

Boeing shows signs of revenue and capital recovery, but its high valuation, weak liquidity, and negative EPS still outweigh its strengths.

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Riot Platforms Inc (Symbol: RIOT), where a total of 149,953 contracts have traded so far, representing approximately 15.0 million underlying shares. That amounts to about 91.2% of RIOT's average daily trading volume over the past month of 16.4 million shares. Especially high volume was seen for the $13 strike call option expiring November 13, 2026, with 35,542 contracts trading so far today, representing approximately 3.6 million underlying shares of RIOT. Below is a chart showing RIOT's trailing twelve month trading history, with the $13 strike highlighted in orange:
United Parcel Service Inc (Symbol: UPS) options are showing a volume of 33,815 contracts thus far today. That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 76% of UPS's average daily trading volume over the past month, of 4.4 million shares. Particularly high volume was seen for the $100 strike call option expiring November 20, 2026, with 2,933 contracts trading so far today, representing approximately 293,300 underlying shares of UPS. Below is a chart showing UPS's trailing twelve month trading history, with the $100 strike highlighted in orange:
And Boeing Co. (Symbol: BA) options are showing a volume of 57,672 contracts thus far today. That number of contracts represents approximately 5.8 million underlying shares, working out to a sizeable 71% of BA's average daily trading volume over the past month, of 8.1 million shares. Particularly high volume was seen for the $200 strike call option expiring October 30, 2026, with 2,986 contracts trading so far today, representing approximately 298,600 underlying shares of BA. Below is a chart showing BA's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for RIOT options, UPS options, or BA options, visit StockOptionsChannel.com.
Further RIOT Research:

Noteworthy Monday Option Activity: RIOT, UPS, BA

Key Points
The U.S. Air Force chose Anduril and General Atomics to produce Collaborative Combat Aircraft for it, rejecting Northrop Grumman's offering.
Northrop Grumman is proceeding to develop its YFQ-48A Talon Blue drone anyway.
A second "increment" of the CCA competition could see Talon Blue compete.
For Northrop Grumman (NYSE: NOC), the bad news arrived in June. The U.S. Air Force had just announced contracts to build new Collaborative Combat Aircraft (CCA), the drone warplanes that will fly in support of piloted fighter jets -- naming two companies as winners.
Northrop Grumman was neither of them.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Good news for Anduril and General Atomics -- bad news for everyone else
Five companies had entered the Air Force CCA competition: publicly traded Boeing, Lockheed Martin, and Northrop Grumman, and also privately held Anduril and General Atomics. In a somewhat shocking development, though, all of the publicly traded defense companies' designs were rejected. Only privately held General Atomics and Anduril Industries won production contracts for their respective FQ-42 Vengeance and FQ-44 Fury CCA drones.
Northrop Grumman may not be left entirely out in the cold. In a twist, the Air Force awarded contracts for CCA hardware and software separately. Northrop didn't win the hardware contract, but it did make the list for drone software vendors. Other companies on this list include Anduril, General Atomics, and Lockheed Martin from the hardware competition, as well as RTX Corporation and Shield AI. That feels kind of like a consolation prize for Northrop, however. The builder of "the world's first sixth-generation aircraft," the B-21 Stealth Bomber, went head-to-head with a team of U.S. rivals to build the fighter drones that will escort it -- and lost.
But Northop isn't taking the loss sitting down.
Full speed ahead
The U.S. Air Force may not want Northrop Grumman's CCA, but as we learned last week, Northrop Grumman has decided to build one anyway. Dubbed the YFQ-48A Talon Blue, this prototype fighter drone took off for the first time earlier this month.
YFQ-48A Talon Blue is airborne. Its first flight, including taxi, takeoff and landing, was fully autonomous. This is the latest step in our work to make autonomous airpower faster and more affordable to produce. https://t.co/YkA3YGvCdq https://t.co/6g9m41ahqn
-- Northrop Grumman (@NGCNews) October 3, 2026
Based on a Scaled Composites aircraft (Northrop bought Scaled Composites in 2007), Talon Blue runs on Northrop Grumman Prism Mission Autonomy software, presumably the same software Northrop is offering for the CCA program. The aircraft is fixed-wing and powered by a single Pratt & Whitney PW500 turbofan that will give it a 700-mile range -- slightly longer than that of an F-35 stealth fighter. It's believed to measure about 40 feet in length with a 33-foot wingspan.
Northrop also confirms that the drone has an "integrated weapons" bay that will make it stealthier than other drones.
Will the Air Force buy it?
None of this may matter, of course, if Northrop cannot convince the Air Force to buy the drone. Years ago, during the invasions of Afghanistan and Iraq, defense company Textron made a similar effort to build a budget-priced fighter, the Scorpion, on spec. The company sank "many millions of dollars in design and development" into the effort -- but it never found a buyer.
Northrop's Talon Blue may meet a similar fate. But even if it does, that's OK.
Paid for internally, Northrop Grumman characterizes its investment in Project Talon as research and development of "mission-ready autonomous airpower capabilities." The company is probably prepared for the risk that the Air Force doesn't buy its CCA drone, and that it will have to write off the cost as R&D. That could still pay off if the company makes advances in simplifying the design to use fewer, lighter, and less expensive parts, permitting it to manufacture simpler drones faster and at lower cost, for future competitions.
What's next for Northrop Grumman
Speaking of which, there's always the chance Northrop will be able to sell its CCA drone eventually.
Although Northrop didn't win an Air Force contract in Increment 1 of the CCA program, it's already gearing up for a second competition and selecting designs to approve for Increment 2. According to TheAviationist.com, Northrop may submit Talon Blue for that competition.
That said, investing in Northrop solely in the hope that it will win its way into CCA seems like a risky gamble. With its 16 price-to-earnings ratio, skimpy 2.1% dividend yield, and subpar 6.7% growth rate (according to analysts polled by S&P Global Market Intelligence), I suspect you can find better bargains.
Lockheed Martin (NYSE: LMT) remains No. 1 on my list for undervalued defense stocks.
Should you buy stock in Northrop Grumman right now?
Before you buy stock in Northrop Grumman, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Northrop Grumman wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, Lockheed Martin, Northrop Grumman, and RTX. The Motley Fool recommends Textron. The Motley Fool has a disclosure policy.
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USAF Doesn't Want Northrop Grumman's Stealth Drone

Key Points
Archer Aviation is trading in the red, but big opportunities are in its future.
FAA type certification, plus an established defense business, will make Archer a much more valuable company than it is today.
On the surface, Archer Aviation (NYSE: ACHR) stock has been a disappointment this year. The eVTOL stock (electric vertical takeoff and landing) currently trades at about $5 a share, and has traded in the red for most of the year. It closed 2025 at about $7.50 a share; it has spent much of 2026 below $7.
But, honestly, what else should we have expectd? This is a company earning almost zero revenue last year; an aviation hopeful whose aircraft, Midnight, lacked -- and still lacks -- regulatory approval for commercial flights; and a high-flying, speculative stock whose valuation depended on faith, hope, and a whole lot of things going right.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Still, a lot could change in three years. And if Archer executes on its ambitions, I think this stock could gain more than 50% in that time span.
What Archer could look like in three years
Archer Aviation is a pioneer in the nascent eVTOL industry. It, along with Joby Aviation (NYSE: JOBY), is trying to become the first U.S. company to offer air taxi services -- essentially a new mode of aerial transportation that would shuttle you through the air instead of on the ground. The vision for Archer is to transform the congested urban commute by replacing hour-long car rides with 10- to 20-minute zero-emission flights.
As mentioned above, Archer doesn't have the regulatory green light to offer air taxi services commercially. By 2029, however, I expect that Archer will have received FAA type certification and will have started commercial operations.
I don't think that's overly optimistic either. Thing is, Archer has completed three of the FAA's four certification phases and is now working through the final one. Meanwhile, its Midnight aircraft have been completing piloted test flights in California, including trips between cities. Add to that the federal government's enthusiastic push to bring eVTOLs to a major city near you, and I think Archer has a shot at getting Midnight certified in 36 months.
On top of that, Archer has opportunities now that could make it a formidable business in three years. Take, for instance, its defense plans. In August, Archer announced plans to acquire three Boeing subsidiaries, including Insitu, a profitable drone manufacturer generating more than $200 million in annual revenue.
That's right: Archer, who barely eked out $300,000 in 2025, could be generating not insignificant revenue soon. Assuming the deal closes, Archer could enter 2029 with a strong defense business alongside its passenger enterprise.
So how much could a $5,000 investment be worth?
Of course, revenue growth doesn't necessarily translate into stock growth. Dilution, for example, could eat into returns, even if Archer grows into a bigger business.
Indeed, given that Archer lost about $260 million in the second quarter alone, I wouldn't be surprised if the company needed to raise even more capital over the next three years. Toss in the additional shares Archer plans to issue for its Boeing acquisition, and dilution could become a major headwind.
Still, I think Archer has a good shot at hitting $8 a share by October 2029. That would imply 60% upside from here, turning $5,000 into $8,000. This assumes that Archer gets FAA type certification and expands its defense business, both of which, I think, will make it a much more valuable company than it is today.
That isn't, of course, a guarantee, and there are plenty of risks that could kill Archer's plans. Only go into Archer if you have an appetite for risk and can stomach the losses should the company fail to realize its ambitions.
Should you buy stock in Archer Aviation right now?
Before you buy stock in Archer Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Archer Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 13, 2026.
Steven Porrello has positions in Archer Aviation and Joby Aviation. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.

Prediction: Here's What a $5,000 Investment in Archer Aviation Will Be Worth in 3 Years

Key Points
Boeing demonstrates significant recovery potential with revenue growth of 34.5% in the latest fiscal period.
Lockheed Martin provides strong financial stability with nearly $6.9 billion in free cash flow.
Which aerospace giant fits your strategy?
The aerospace market is at a crossroads between commercial recovery and defense modernization. Investors must decide if The Boeing Co. (NYSE:BA) or Lockheed Martin Corp. (NYSE:LMT) offers the better path for long-term growth today.
Boeing dominates commercial aviation and defense, while Lockheed Martin is a premier pure-play defense contractor. Comparing them reveals a choice between a high-stakes turnaround and a steady, dividend-paying stalwart. Both are essential to global infrastructure but offer very different risk and reward profiles for your portfolio.
The case for Boeing Co.
Boeing serves aglobal market providing commercial airplanes and defense systems as one of the largest industrial stocks in the world. The company relies heavily on the U.S. government, specifically the Department of Defense and NASA, while also maintaining critical relationships with commercial airlines in China. Customer concentration like this adds a layer of risk to the business, especially given its recent acquisition of Spirit AeroSystems, which forced Boeing to support competitors like Airbus (OTC:EADSF).
In FY 2025, revenue reached about $89.5 billion, representing a significant 34.5% increase over the previous year. This growth helped the company achieve a net income of approximately $2.2 billion, a sharp recovery from the net loss of around $11.8 billion reported in FY 2024. The turnaround highlights a significant improvement in delivery volumes across its commercial segments.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 10.0x, comparing total debt to shareholder equity. The current ratio, which measures the ability to cover short-term debts with short-term assets, is close to 1.2x. Free cash flow was roughly negative $1.9 billion; note that stock-based compensation (SBC) represented roughly 40% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Lockheed Martin
Lockheed Martin is a premier name among defense stocks, focusing on high-tech security and aerospace solutions. The U.S. government accounted for roughly 72% of its 2025 sales, and customer concentration like this adds a layer of risk to the business. The F-35 program alone represented approximately 27% of total revenue, involving commitments from seven international partner countries and twelve foreign military sales customers.
In FY 2025, revenue reached about $75.1 billion, reflecting a steady 5.7% growth compared to the prior year. Net income for the period was nearly $5.0 billion, which remains robustly profitable despite being a slight decline from previous years. The company continues to benefit from its dominant position in stealth fighter technology and missile defense systems.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 3.2x, indicating the level of debt relative to the value of shareholder equity. Its current ratio is nearly 1.1x, which measures a company's ability to pay off short-term obligations. Free cash flow was roughly $6.9 billion, a metric representing cash from operations minus capital expenditures.
Risk profile comparison
Boeing continues to face hurdles regarding production and certification schedules for several aircraft models, including the 777X and 737 variants. These delays are often exacerbated by complex supply chain dependencies and strict regulatory oversight. The company also navigates risks from losses on fixed-price defense contracts and the integration of Spirit AeroSystems, which brought unexpected liabilities.
Lockheed Martin faces its own set of challenges, particularly its high revenue concentration within the F-35 program. Any future budget cuts or technical performance issues with this platform could significantly impact its financial health. The company also manages risks from a $4.25 billion lawsuit regarding proprietary business models while competing with rivals like RTX Corp. (NYSE:RTX) and Northrop Grumman Corp. (NYSE:NOC).
Valuation comparison
Lockheed Martin appears cheaper than Boeing because its Forward P/E against future earnings estimates and P/S ratio against sales over the past twelve months are lower.
Forward P/E
52.2x
16.9x
P/S ratio
1.6x
1.5x
Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Boeing is still working to recover from safety and supply chain issues that have recently dogged the business. While revenue will rise about 9% to $97.7 billion this year, the company's net income will fall dramatically to around $85 million, according to consensus Wall Street analyst forecasts, hence its high forward P/E ratio.
But don't count Boeing out. It is among the largest aerospace and defense companies, giving it excellent long-term prospects due to its leading position in the growing commercial aerospace industry. In the first quarter of its current fiscal year, the order backlog rose in the double digits, setting a new record. Backlogs mean future sales are strong and show the industry believes in the business. Boeing can expect long-term growth from the air superiority fighter, the F-47, which it is developing to replace the F-22.
Like Boeing, Lockheed Martin Corp. is a core company in U.S. aerospace and defense. In particular, the F-35 fighter program remains a pillar of Lockheed's business, with the Defense Department planning to continue to buy the jet into the 2040s. Having more than a quarter of revenue essentially guaranteed for 15 years or more is unheard of and quite appealing to a long-term investor.In addition to jet fighters, the company has a handful of drone systems it says can integrate into U.S. defense systems to provide a blanket of security systems to complement the jets.
Lockheed's revenue should rise 8% this year to $81 billion, with a much healthier 40% jump in net income to more than $7 billion.
Either one of these businesses is likely a good long-term buy. But under the adage of buying good companies at good prices, Lockheed's lower forward P/E and P/S ratios make it the better buy in 2026.
Should you buy stock in Boeing right now?
Before you buy stock in Boeing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boeing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $380,795!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,390,634!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 13, 2026.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, Lockheed Martin, Northrop Grumman, and RTX. The Motley Fool has a disclosure policy.

Boeing vs. Lockheed Martin: Which Aerospace Stock Is a Better Buy in 2026?

The Boeing Company’s BA shares have lost 10.6% in the past month compared with the Zacks Aerospace-Defense industry’s decline of 9%. BA continues to carry a significant debt burden despite ongoing efforts to reduce its leverage. While the company’s balance sheet is gradually improving, its high debt levels continue to absorb financial capacity that could otherwise support investments, growth initiatives or shareholder returns.
Image Source: Zacks Investment Research
Shares of other defense stocks, such as Northrop Grumman NOC and Lockheed Martin LMT, have lost 8.7% and 6.8%, respectively. Northrop Grumman is supported by strong backlog levels, higher defense spending and growing demand across strategic deterrence, missile defense, space and advanced aircraft. Similarly, Lockheed Martin benefits from a robust backlog, increasing munitions production and strong alignment with United States and allied defense priorities, providing a foundation for sustained growth.
Considering Boeing’s underperformance, investors may be wondering whether now is a good time to add the stock to their portfolios. Let’s examine the factors and assess the company’s investment prospects to make a more informed decision.
Key Headwinds Facing BA Stock
Boeing’s consolidated debt totaled $45.9 billion as of the end of the second quarter, down $1.3 billion sequentially and $8.2 billion year to date. Cash and marketable securities totaled $20.0 billion, while $10.0 billion of credit facilities remained undrawn. The balance sheet is improving, but debt still absorbs financial capacity that could otherwise support investment or shareholder returns. Boeing expects free cash flow of $1 billion to $3 billion in 2026, with a $700 million DOJ payment scheduled for the third quarter. Management remains committed to debt reduction and preserving its investment-grade rating. Until cash generation becomes more durable, leverage will remain an important constraint on financial flexibility.
The order book is growing, but slow production, delayed deliveries and ongoing inspections could be turning customers away from Boeing’s commercial aeroplanes, leading to recent order cancellations. Aircraft order cancellations during the six months ended June 30, 2026, totaled $2.78 billion and primarily relate to 737 aircraft. Additionally, the 777X program has suffered repeated postponements and significant cost overruns. The Boeing 777X program is running seven years late, with an expected entry-into-service date in 2027. These delays—driven by rigorous FAA scrutiny, design changes and part cracks—have resulted in significant cost overruns.
Factors Acting in Favor of BA Stock
On Oct. 5, 2026, Boeing announced that it received a seven-year contract from Lockheed Martin to scale production and deliver PAC-3 Missile Segment Enhancement (“MSE”) seekers. The award formalizes a previously announced seven-year framework and allows Boeing to triple PAC-3 MSE seeker production. The contract strengthens Boeing's Defense, Space & Security (BDS) business by providing greater visibility into long-term defense demand and supporting higher production volumes for a critical missile-defense component.
On Oct. 1, 2026, Boeing announced that it had received an order for the first four full-rate production MH-139A Grey Wolf helicopters after the U.S. Air Force declared the program had reached initial operational capability earlier in the year. The award moves the Grey Wolf program into full-rate production and supports the Air Force’s plans to deploy the helicopter to protect critical national assets, including strategic missile fields. The new order brings the total number of MH-139A helicopters under contract to 42, with Boeing having already delivered 27.
Estimates for BA Stock
The Zacks Consensus Estimate for Boeing’s 2026 earnings per share (EPS) indicates a year-over-year improvement of 91.45%.
The consensus estimate for Northrop Grumman’s 2026 EPS suggests year-over-year growth of 9.45%. The Zacks Consensus Estimate for Lockheed Martin’s 2026 EPS implies a year-over-year rise of 31.7%.
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%.
BA Stock’s Poor ROIC
The 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.
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 1.36X, a discount to the industry’s average of 2.11X. 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
What Should Be the Next Move?
Boeing is making progress on debt reduction, but elevated leverage and uneven cash generation continue to constrain financial flexibility. Commercial-aircraft production delays, order cancellations and 777X setbacks remain key risks, while growing defense contracts provide a positive offset by strengthening demand and production visibility.
Considering current execution challenges, price performance and poor ROIC, it is advisable to avoid the stock at present. BA has a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Boeing Down 10.6% in a Month: Is This an Indication to Sell the Stock?

Key Points
Boeing holds a dominant position in the commercial aviation market with a massive backlog and critical defense contracts.
Space Exploration Technologies continues to lead the satellite launch market while rapidly expanding its Starlink internet constellation.
Which aerospace giant offers the best path for long-term growth in your 2026 investment portfolio?
Choosing between an established titan like Boeing (NYSE:BA) and a high-growth disruptor like Space Exploration Technologies (NASDAQ:SPCX)requires balancing historical market dominance with the potential of the new space economy.
Boeing remains a foundational player in global travel and national security, while Space Exploration Technologies has revolutionized launch costs and satellite communications. These two companies are frequently compared because they compete for massive government contracts and define the technological limits of modern aerospace engineering.
The case for Boeing
Boeing operates as a primary manufacturer of commercial jetliners and a major contractor for global military and space systems. The company generates significant revenue from a limited number of commercial airline customers and the U.S. government, including the Department of Defense and NASA. Customer concentration like this adds a layer of risk to the business, particularly among defense stocks where budget shifts can impact long-term programs. Beyond its domestic ties, Boeing maintains long-standing relationships in China, though trade volatility sometimes causes delivery pauses.
In FY 2025, revenue reached nearly $89.5 billion, representing an impressive year-over-year growth of approximately 34.5%. This growth helped the company achieve a net income of roughly $2.2 billion, a significant turnaround from the net losses reported in the previous two fiscal years. The increase in revenue and the return to profitability suggest that Boeing is making progress in stabilizing its production lines after a period of intense operational scrutiny.
As of its December 2025 balance sheet, the company carries a debt-to-equity ratio of 10.0x. This ratio compares total debt to shareholder equity, indicating that Boeing relies heavily on borrowed capital to fund its operations. Its current ratio, which measures the ability to cover short-term debts with short-term assets, is approximately 1.2x. Free cash flow was nearly negative $1.9 billion for the year, representing the cash a business has left over after paying for capital expenditures. Note that stock-based compensation accounted for roughly 40% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back to cash flow.
The case for Space Exploration Technologies
Space Exploration Technologies has transformed the space industry through its reusable rocket technology and the Starlink satellite internet segment. The company provides launch services for private satellite operators and government agencies, while also supporting human spaceflight missions. With over 22,000 employees as of early 2026, the company has scaled rapidly to support the deployment of the Starlink constellation, which aims to provide high-speed internet to users worldwide.
In FY 2025, revenue grew to approximately $18.7 billion, a 33.2% increase compared to the prior year. Despite this growth, the company reported a net loss of nearly $4.9 billion for the period. This net loss reflects the massive capital requirements of developing the Starship launch system and expanding the satellite network. While the revenue trajectory is positive, the company continues to prioritize long-term infrastructure over immediate profitability.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.6x, indicating a much lower reliance on debt than its older peer. The current ratio stands at roughly 1.4x, indicating a healthy level of short-term liquidity. Free cash flow for the period was negative $14.0 billion, which equals cash flow from operations minus capital expenditures. Note that stock-based compensation accounted for roughly 28.7% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back to cash flow.
Risk profile comparison
Boeing faces significant material risks from ongoing production and certification delays involving its 777X and 737 programs. These hurdles impact financial performance and the company's ability to fulfill existing contracts on time. Additionally, the operational integration of Spirit AeroSystems has uncovered hundreds of millions of dollars in unexpected liabilities. Boeing is also vulnerable to losses on fixed-price defense contracts, where costs often exceed initial estimates. Competition remains fierce from Airbus (OTC:EADSF), especially as Boeing manages labor instability and supply chain disruptions.
Space Exploration Technologies operates in an environment with extreme capital intensity and regulatory uncertainty. The company must successfully execute a high volume of launches to maintain its market share against rivals such as Lockheed Martin (NYSE:LMT) and Northrop Grumman (NYSE:NOC). Any significant failure during a crewed or high-profile cargo mission could result in the fleet being grounded and loss of customer confidence. Furthermore, the massive investment required for Starlink and Starship means the company remains dependent on external funding or cash from launch operations to bridge the gap until those projects become self-sustaining.
Valuation comparison
Boeing trades at a lower valuation based on its established revenue and return to profitability, while Space Exploration Technologies trades at an extremely high multiple, reflecting its growth-oriented nature.
Metric
Boeing
Space Exploration Technologies
Forward P/E
49.8x
7948.0x
P/S ratio
1.6x
n/a
Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
Which stock would I buy in 2026?
To compare Boeing and SpaceX, investors have to understand that while both of these companies overlap in some fields, they are ultimately very different companies and very different stocks.
First, let's discuss their business models. Boeing is a mature and iconic aerospace company. It has been a public company for 64 years. It operates in several subsectors, including commercial and military aviation production, flight operations, autonomous systems, and space systems. Conversely, SpaceX is a brand-new public company that operates at the cutting edge of technology, telecom, and aerospace. The company controls about 85% of the U.S. commercial space launch market, offers connectivity through its Starlink satellite network, and is also a powerhouse in artificial intelligence (AI), social media, and next-gen computing following its merger with xAI and X (formerly Twitter).
What's more, Boeing is undergoing a major operational recovery. After several years of net losses, the company has rebounded in 2026, posting its first consistent profits since 2019. Nonetheless, free cash flow remains negative, and the current trailing 12-month revenue of $94 billion has yet to surpass its 2019 peak of $101 billion. However, net debt has dropped from a high of $47 billion to a more reasonable $26 billion over the last two years.
SpaceX, on the other hand, is a company at the very start of its lifecycle. It's growing rapidly, with revenue growing 33% to $18.7 billion. The company has a strong balance sheet, with over $60 billion in net cash (total debt less total cash on hand). As for strategy, the company has ambitious goals, including space-based data centers, satellite-based global telecommunications, fully reusable space launch vehicles, and deep-space missions to the Moon and Mars.
To sum up, Boeing and SpaceX are more dissimilar than they are alike. Boeing stock may appeal to investors seeking a classic turnaround stock. Early indications are that the company has overcome some of its worst days. However, for long-term investors, SpaceX is more appealing. The company has strategic aims to forge new industries (space- or moon-based manufacturing and data centers) and to fully disrupt existing ones, such as wireless telecom. For those willing to invest for decades, SpaceX is a strong stock to consider.
Should you buy stock in Boeing right now?
Before you buy stock in Boeing, consider this:
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Jake Lerch has positions in Boeing, Lockheed Martin, and Space Exploration Technologies. The Motley Fool has positions in and recommends Boeing, Lockheed Martin, and Northrop Grumman. The Motley Fool has a disclosure policy.

Boeing vs. Space Exploration Technologies: Which Industrials Stock Is a Better Buy in 2026?

(RTTNews) - The U.S. Federal Aviation Administration or FAA has reportedly concluded that a recently identified software issue affecting certain Boeing 737 Max aircraft does not present a flight safety concern, a development that could help clear the way for certification of the 737 Max 10, according to media reports.
Reports said the finding removes a potential hurdle for Boeing as the aircraft maker seeks approval for the largest member of its 737 Max family while working to boost deliveries following years of manufacturing and safety-related challenges.
Boeing disclosed the software issue last month, with reports indicating that it could affect certain landing procedures. The FAA subsequently reviewed whether the matter represented a safety-of-flight concern.
According to reports, FAA safety experts determined that pilots would retain full control of the aircraft and receive clear indications if the issue occurred, leading regulators to conclude it was not a safety risk.
Reports said Boeing indicated the issue could arise after a missed approach when pilots modify a preprogrammed flight path, requiring additional steps before some automated functions can be used during a subsequent approach.
The FAA is expected to issue guidance to airlines on recognizing and responding to the issue, reports said. The review reportedly involved specialists in areas including airframes, flight controls, propulsion and flight testing.
According to reports, the agency said it could consider further action if new information emerges.
While U.S. airlines were reported to be unaffected because they can revert to earlier software versions, the issue had raised questions about the timing of certification for the 737 Max 10. Boeing and several airline customers had expected approval this fall, reports said.
The 737 Max 10 is the final variant in the Max family awaiting certification, while the smaller Max 7 received regulatory approval earlier this year, according to reports.
Shares of Boeing rose 0.67% to close at $193.56 on October 2, reflecting a gain of $1.28 in trading on the NYSE.

FAA Reportedly Finds Boeing 737 Max Software Issue Poses No Safety Risk

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Boeing Co. (Symbol: BA), where a total volume of 83,898 contracts has been traded thus far today, a contract volume which is representative of approximately 8.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 107.8% of BA's average daily trading volume over the past month, of 7.8 million shares. Especially high volume was seen for the $190 strike call option expiring October 02, 2026, with 9,630 contracts trading so far today, representing approximately 963,000 underlying shares of BA. Below is a chart showing BA's trailing twelve month trading history, with the $190 strike highlighted in orange:
Robinhood Markets Inc (Symbol: HOOD) saw options trading volume of 251,483 contracts, representing approximately 25.1 million underlying shares or approximately 107.2% of HOOD's average daily trading volume over the past month, of 23.5 million shares. Particularly high volume was seen for the $120 strike call option expiring October 02, 2026, with 17,685 contracts trading so far today, representing approximately 1.8 million underlying shares of HOOD. Below is a chart showing HOOD's trailing twelve month trading history, with the $120 strike highlighted in orange:
And Schrodinger Inc (Symbol: SDGR) options are showing a volume of 24,650 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 102% of SDGR's average daily trading volume over the past month, of 2.4 million shares. Particularly high volume was seen for the $35 strike call option expiring November 20, 2026, with 20,673 contracts trading so far today, representing approximately 2.1 million underlying shares of SDGR. Below is a chart showing SDGR's trailing twelve month trading history, with the $35 strike highlighted in orange:
For the various different available expirations for BA options, HOOD options, or SDGR options, visit StockOptionsChannel.com.
Further BA Research:

Notable Thursday Option Activity: BA, HOOD, SDGR

Key Points
Boeing delivered substantial revenue growth in FY 2025 as it works toward a return to consistent profitability.
GE Aerospace is a focused aerospace leader with high net margins and strong free cash flow generation.
Which industrial giant offers the more compelling opportunity for your portfolio in 2026?
Deciding between a turnaround play and a specialized leader requires a close look at the fundamentals. We compare Boeing Co (NYSE:BA) and GE Aerospace (NYSE:GE) to see which stock fits you.
Boeing remains a primary force in the global aerospace and defense markets, while GE Aerospace was spun off from the old GE in 2024 to focus entirely on aviation engines and systems. Both companies are vital to the future of travel, yet they currently present very different financial profiles for everyday investors.
The case for Boeing
Boeing designs, manufactures, and services commercial airplanes, defense products, and space systems across 150 countries. It relies heavily on a small group of airline customers and the U.S. government, including the Department of Defense and NASA. Customer concentration like this adds a layer of risk to the business, especially as it integrates new fuselage operations following its acquisition of Spirit AeroSystems.
In FY 2025, revenue reached about $89.5 billion, representing a significant growth of approximately 34.5% compared to the previous year. This revenue surge allowed the company to report a net income of around $2.2 billion and a net margin of roughly 2.5%. This performance is a notable shift from the substantial net loss recorded during the 2024 fiscal period, indicating progress in its operational recovery.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 10x. This ratio, which compares total debt to shareholder equity, indicates a highly leveraged financial structure where total liabilities exceed shareholder equity. The so-called current ratio, a measure of the ability to pay short-term debts with current assets, was approximately 1.2x. Free cash flow was a negative $1.9 billion, and stock-based compensation represented roughly 40% of operating cash flow, which inflates reported cash generation.
The case for GE Aerospace
GE Aerospace is a global leader in propulsion, services, and systems for aviation. It manages a massive fleet of over 70,000 installed engines worldwide, serving both commercial airlines and military defense agencies. This specialized focus within defense stocks allows the company to concentrate resources on high-margin services and advanced turbine technology.
In FY 2025, revenue reached nearly $45.9 billion, representing roughly 18.5% year-over-year growth. The company reported a net income of approximately $8.7 billion, with a net margin of close to 19%. Net margin is a profitability metric that measures how much profit a company keeps from every dollar of sales it generates after all expenses are paid.
As of its December 2025 balance sheet, GE Aerospace maintained a debt-to-equity ratio of approximately 1.1x. This ratio, which measures total debt against shareholder equity, suggests a more balanced capital structure with lower reliance on borrowed funds. The current ratio was about 1.0x, indicating that short-term assets and liabilities are nearly equal. Free cash flow reached nearly $7.3 billion, demonstrating the company's ability to generate cash after paying for capital expenditures.
Risk profile comparison
Boeing faces operational risks stemming from its complex production system and certification delays for models such as the 777X and 737-10. The integration of Spirit AeroSystems has uncovered additional liabilities and costs that could impact financial results. Furthermore, the company faces potential work stoppages and must manage high debt levels that require consistent access to capital markets to maintain liquidity.
GE Aerospace operates in a highly competitive environment alongside major rivals like RTX Corp (NYSE:RTX) and Airbus (OTC:EADSF). It must also invest heavily in research and development to maintain its technological edge in engine propulsion. While the company is more focused than in the past, it remains sensitive to fluctuations in the global aviation market and shifts in government defense spending.
Valuation comparison
GE Aerospace is cheaper based on Forward P/E and future earnings estimates, while Boeing leads on P/S ratio using sales over the past twelve months.
Metric
Boeing
General Electric
Forward P/E
49.7x
40.0x
P/S ratio
1.7x
6.5x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
GE Aerospace is the market leader in aircraft engines, boasting the most installed engines "under wing," in industry parlance. The company has been focusing on increasing productivity and improving its supply chain by working closely with suppliers. These efforts have meaningfully improved the availability of components for GE Aerospace, helping it meet demand and increasing sales and margins.
Business continues to be good. Management expects growth from recent awards to produce engines for the new F-47 jet from Boeing, as well as a $1.4 billion award from the U.S. Marines. It also received commercial airline awards from United Airlines Holdings Inc. (NASDAQ:UAL), American Airlines Group Inc. (NYSE:AA), and Delta Air Lines Inc. (NYSE:DAL), totaling over $1 billion.
Revenue for the current year, fiscal 2026, is seen growing more than 18% to $52.3 billion, though net income probably lags that pace, growing 5% to $9.1 billion.
Boeing is still working to recover from safety and supply chain issues. While revenue will rise about 9% to $97.7 billion this year, the company's net income will fall dramatically to around $85 million, according to consensus Wall Street analyst forecasts, hence its high forward P/E ratio.
But don't count Boeing out. It is among the largest aerospace and defense companies, giving it excellent long-term prospects due to its leading position in the growing commercial aerospace industry. In the first quarter of its current fiscal year, the order backlog rose in the double digits, setting a new record. Backlogs mean future sales are strong and show the industry believes in the business. Of course, with GE Aerospace expecting growth from the F-47, obviously Boeing can expect long-term growth from the air superiority fighter as well.
GE Aerospace is firing on all cylinders, and while it comes with a premium, as its forward P/E and P/S ratios show, it's a nice addition to any long-term investor's portfolio.
Should you buy stock in Boeing right now?
Before you buy stock in Boeing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boeing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, GE Aerospace, and RTX. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Boeing vs. GE Aerospace: Which Aerospace Stock Is a Better Buy in 2026?

Key Points
Boeing stock sank on news of a 737 "software glitch" yesterday.
FAA is postponing certification of the 737 MAX 10.
NASA, though, just announced a plan to return Boeing's Starliner spacecraft to operations.
Boeing (NYSE: BA) stock had a bad case of the Mondays, er, Monday. Shares closed down nearly 7% after The Wall Street Journal reported that Boeing has identified a new "software glitch" on its 737 MAX airliners. Soon after, we learned the Federal Aviation Administration will postpone certification of the 737 MAX 10 airliner pending resolution of the glitch.
But Tuesday is a new day. And today, Boeing stock is up 2.8%.
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Why Boeing stock is moving higher
Part of the credit for today's move goes to investment bank UBS, where analyst Gavin Parsons just reiterated his "buy" rating on the aerospace stock. Worries over the glitch have investors "pricing in a high probability of a material negative impact to cash flow," says Parsons. But according to StreetInsider.com, the analyst thinks investors are "underweighting the normalized earnings potential, which in our view is unchanged."
Near term, Parsons agrees that Boeing faces some risks to cash flow -- and even the potential for renewed cash burn as deliveries are delayed by Boeing customers such as Southwest Airlines and United Airlines.
Long-term, however, the analyst believes (and I agree) that Boeing will patch the software glitch (management says this should happen by "early 2028"), resume deliveries, and recoup the cash it loses.
More good news for Boeing
And then there's the bit of good news that UBS didn't mention. In a broadcast press conference yesterday, NASA Administrator Jared Isaacman appeared along with astronauts, NASA staffers, and a Boeing representative to announce the return of Boeing's troubled Starliner spacecraft to flight.
More than that, it sounds like Starliner will soon be NASA's preferred means of transporting astronauts to the International Space Station, replacing SpaceX's (NASDAQ: SPCX) Falcon 9 and Crew Dragon.
Despite the headlines, things are looking up for Boeing.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.
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