Reasons to Avoid Investing in Boeing Stock

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Boeing (NYSE:BA) experienced a 5% drop in stock value on June 12, 2025, following the crash of an Air India 787 Dreamliner that resulted in 241 fatalities. This incident has intensified scrutiny on the company, already facing penalties due to quality control issues with its 737 MAX fleet.

Currently priced at approximately $205, analysts view Boeing’s stock as a poor investment due to weak operating performance and financial health indicators. Boeing’s four-quarter operating income stands at -$10 billion, translating to an operating margin of -14.7%, compared to 13.2% for the S&P 500. The company’s debt level is $54 billion, leading to a debt-to-equity ratio of 32.9%, which is significantly higher than the S&P 500’s ratio of 19.9%.

In terms of revenue, Boeing has experienced a 9.2% decline over the past year from $76 billion to $69 billion, while its cash-to-assets ratio is at 15.1%, slightly above the S&P 500 average of 13.8%. Given these factors, Boeing’s overall performance is rated as very weak, indicating extreme caution for potential investors.

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