The Boeing Company’s BA shares have risen 8.6% over the past month compared with the Zacks Aerospace-Defense industry’s growth of 6.2%. The company remains one of the largest U.S. commercial aircraft manufacturers. Boeing’s defense and space business continues to enjoy a positive outlook.
Shares of other defense stocks, such as Lockheed Martin LMT and Northrop Grumman NOC, have gained 3.4% and 1.3%, respectively, during the same time frame. Lockheed Martin continues to convert demand for key franchise programs into sizable awards, supporting revenue visibility over a multiyear horizon. Northrop Grumman boasts a solid presence in Defense and Cyber Security programs, with its product line being well positioned in high-priority categories.
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.
Factors Acting in Favor of BA
Boeing remains one of the largest aircraft manufacturers in the world in terms of revenues, orders and deliveries, particularly in the commercial aerospace industry. The company benefited from a significant first-mover advantage, having established itself as one of the pioneers of modern commercial aviation.
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.
Recently, Boeing has been awarded a contract by the U.S. Space Force to develop two satellites under the Mobile User Objective System Service Life Extension (MUOS SLE) program. The contract, valued at up to $2 billion, is intended to extend the operational life of the U.S. military's secure narrowband satellite communications network beyond the current MUOS constellation. The award further strengthens Boeing's position in military satellite communications, where high technical barriers to entry and rising government investments in resilient space-based defense capabilities support long-term demand.
In June 2026, Boeing unveiled enhanced capabilities for its MQ-28 Ghost Bat autonomous combat aircraft at the ILA Berlin Air Show. The upgrades include a wing that is more than 25% larger to increase range and payload capacity, beyond-line-of-sight communication capabilities for greater operational flexibility, internal weapon bays for enhanced combat capability, and an open-architecture software design that allows customers to integrate their own payloads and mission systems. The enhanced MQ-28 capabilities significantly strengthen Boeing's position in the rapidly growing market for autonomous collaborative combat aircraft.
Headwinds for BA Stocks
Production disruptions, regulatory scrutiny and the financial impact of the 737 MAX grounding forced Boeing to rely heavily on debt to support liquidity and maintain operations. As a result, the company still carries a substantial debt burden, which continues to limit its financial flexibility.
In first-quarter 2026, consolidated debt totaled approximately $47.2 billion, although this was down from $54.1 billion at the end of 2025 after the company repaid nearly $6.9 billion of debt during the quarter. Because of this elevated debt load and the need to preserve cash for production stabilization, safety improvements, capital investments and the integration of Spirit AeroSystems, Boeing has not yet reinstated common stock dividends or share repurchase programs.
Estimates for BA Stock
The Zacks Consensus Estimate for 2026 earnings per share (EPS) indicates year-over-year growth of 98.59%.
The consensus estimate for Lockheed Martin’s 2026 EPS indicates year-over-year growth of 29.24%. The Zacks Consensus Estimate for Northrop Grumman’s 2026 EPS indicates year-over-year growth of 6.23%.
BA’s Earnings Surprise History
The company beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 77.71%.
BA Stock’s Liquidity
The company’s current ratio is 1.18 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.
BA Stock Trades at a Discount
In terms of valuation, Boeing’s forward 12-month price-to-sales (P/S) is 1.72X, a discount to the industry’s average of 2.64X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with that of its peer group.
What Should an Investor Do Now?
Boeing’s recent defense wins, including next-generation military satellite and autonomous combat aircraft programs, further strengthen its position in high-barrier, fast-growing defense and space markets, supporting long-term growth opportunities.
Considering high debt levels, new investors should wait and look for a better entry point. Investors who already hold 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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The Boeing Company (BA): Free Stock Analysis Report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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