Boeing stock price crashed this week as concerns about tariffs rose. BA shares fell to a low of $158, its lowest level since December 9, and 16% from its highest point this year, and 40% below the highest point in 2024. So, is it safe to buy the Boeing stock dip?
Boeing stock crashes as risks rise
Boeing shares have remained under pressure since 2019, when it peaked at $436. It then crashed to a low of $89 in March 2020 and rebounded to $277 in 2021. It has remained under constraints as it has moved from one crisis to another.
Read more: The Boeing crisis: will the company make it out alive?
The current crisis is the recently announced tariffs by Donald Trump. He has added a 25% tariff on steel and aluminium, two metals that the company uses widely.
Trump has also added tariffs for goods coming from top countries like Canada, Mexico, and China. These countries have also announced retaliatory tariffs against the US dollar.
Boeing is the biggest American exporter, meaning that it may become a target of other countries. For example, a big tariff on Boeing planes would have a big impact on its business as many airlines would switch to comparable planes from Airbus.
Airbus is a European company that may continue seeing more demand and gaining market share against Boeing. This trend may gain steam in the coming months as the ongoing trade war accelerates.
Analysts are upbeat about BA stock
Meanwhile, analysts are optimistic about the Boeing share price and its business. Besides, the company has not made any major negative headlines in the past few months. That is a good thing since its design issues have contributed to its weakness in the past few years.
The average estimate among analysts is that Boeing’s revenue will grow by 17.45% in the first quarter to $20 billion. The highest estimate is its revenue will be $21.25 billion.
Analysts also expect that Boeing’s revenue will then grow by 20% in the next quarter and 27% this year to $85 billion. This double-digit growth is primarily because of the low base from last year when the company idled some production.
Boeing’s profitability is also expected to make marginal improvement as long as it stays out of trouble this year. The loss-per-share this quarter will be 99 cents, lower than the $1.13 it lost a year earlier.
Boeing’s loss per share this year will be $1.49, followed by $4.24 in the following year. It lost $20.38 in the last financial year.
Boeing will also benefit from the conclusion of its recent strike action in the US, leading to the resumption of 737, 767, and 777 planes.
Therefore, barring any major issues, there is a likelihood that Boeing’s business will bounce back this year.
This explains why the average analyst estimate is for the Boeing stock price to rise to $195 from the current $151.
Boeing share price analysis
BA chart by TradingView
The daily chart shows that the BA share price has dropped in the past few days as investors anticipated that it will be a collateral damage for the ongoing tariff war. It has slipped from $188.28 on February 25 to the current $160.
Boeing has dropped below the crucial support level at $176, the lowest level in October 2023. It has also moved below the 50-day and 200-day moving averages, while the Stochastic RSI has moved below the oversold level.
Therefore, the short-term outlook for the Boeing stock is bearish, with the next level to watch being at $145. The stock will likely rebound later this year as the new management implements its turnaround strategy.
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