Investors Should Sell Boeing Shares Due To Risks

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The Country Caller reviews how Donald Trump is affecting the shares of the defense company

Boeing Co (NYSE:BA) is expected to face two main risks with its business and revenues in the year 2017. These risks are the decline in profit margin in its commercial airplane business and secondly, the risk associated with the coming of President-elect Donald Trump and his associated trade policy agenda.

A strong correlation is found with the average age of Boeing’s planes and commercial operating margins. The signs that drive these profits are also very much visible and their life is visible in the market in which it operates.

Donald Trump, on the other hand, has adopted very protectionist trade policies. Whether this will be the actual case when he resumes office or not, only time will be able to tell. Donald Trump will support US-based companies, providing jobs to the US, and not costing to the country in the larger sphere.

Stock Update

Boeing has been assigned Underperform rating at RBC, due to market being inferior. The market for next generation fighter and bomber planes is slowly sliding down. RBC has also assigned a target price of $136.

The company stock traded at $157.03, sliding 1.50% as at 10:46 AM EST. It trades in the 52-week range of $102.10-160.07. The company possesses a huge market capital of $97.15 billion. The stock has a year-over-year (YoY) increase of 19.07%, and price-to-earnings (P/E) ratio of 23.90. The company has earnings per share (EPS) of 6.57.

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