Boeing Stock Drop Looks Sharp, But How Deep Can It Go?
Boeing (BA) stock is down 18.2% in 21 trading days. The recent slide reflects renewed concerns around persistent supply chain issues and delayed aircraft deliveries, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Boeing stands today.
- Size: Boeing is a $139 Bil company with $81 Bil in revenue currently trading at $182.44.
- Fundamentals: Last 12 month revenue growth of 10.2% and operating margin of -10.4%.
- Liquidity: Has Debt to Equity ratio of 0.38 and Cash to Assets ratio of 0.15
- Valuation: Boeing stock is currently trading at P/E multiple of -14.1 and P/EBIT multiple of -20.1
- Has returned (median) 44.2% within a year following sharp dips since 2010. See BA Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Low valuation – making the stock Attractive. For details, see Buy or Sell BA Stock
That brings us to the key consideration for investors worried about this fall: how resilient is BA stock if markets turn south? This is where our downturn resilience framework comes in. Suppose BA stock falls another 20-30% to $128 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- BA stock fell 57.0% from a high of $269.19 on 12 March 2021 to $115.86 on 13 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $264.27 on 17 December 2023 , and currently trades at $182.44
| BA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -57.0% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- BA stock fell 72.7% from a high of $347.45 on 12 February 2020 to $95.01 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
| BA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -72.7% | -33.9% |
| Time to Full Recovery | Not Fully Recovered | 148 days |
2018 Correction
- BA stock fell 27.3% from a high of $440.62 on 1 March 2019 to $320.42 on 14 August 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
| BA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -27.3% | -19.8% |
| Time to Full Recovery | Not Fully Recovered | 120 days |
2008 Global Financial Crisis
- BA stock fell 72.6% from a high of $107.23 on 25 July 2007 to $29.36 on 3 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 July 2013
| BA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -72.6% | -56.8% |
| Time to Full Recovery | 1598 days | 1480 days |
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