Boeing Company (BA) shares have gained 7.4% year to date, slightly outpacing the Zacks Aerospace-Defense industry’s growth of 7% over the same period.
The government’s continued push to strengthen national defense and space systems is widely seen as a meaningful growth catalyst for the aerospace giant moving forward.
Peer defense stocks have outperformed Boeing considerably, with Lockheed Martin (LMT) and RTX Corporation (RTX) posting gains of 23.6% and 21.9%, respectively, year to date.
Lockheed Martin’s record backlog, expanding munitions capacity and alignment with U.S. and allied defense priorities are supporting its durable growth trajectory in 2026.
RTX’s strong backlog and new program awards are providing multi-year production visibility, with favorable program mix expected to sustain continued defense expansion.
Boeing’s commercial aircraft franchise remains a core strength, with its 737 narrow-body family and 787 Dreamliner wide-body aircraft securing strong positions across major airline segments worldwide.
In the second quarter of 2026, Boeing Commercial Airplanes delivered 171 airplanes, up 14% year over year and the highest quarterly total since 2018, with segment revenues rising 8% to $11.75 billion.
Boeing booked 246 net commercial orders in the quarter and ended with a record $597 billion backlog, while the 737 program began transitioning production to 47 airplanes per month.
On the defense side, the U.S. Navy MQ-25A Stingray completed its first flight and received Milestone C, clearing the program for low-rate initial production.
The U.S. Air Force T-7A Red Hawk also achieved Milestone C and began low-rate initial production, adding further momentum to Boeing’s defense program portfolio.
Boeing also signed offset implementation agreements with Wojskowe Zaklady Lotnicze Nr 1 S.A. and the Military Central Bureau of Design and Technology S.A. to support long-term maintenance of Poland’s AH-64E Apache helicopter fleet.
Despite these positives, Boeing faces significant headwinds, as aircraft order cancellations during the six months ended June 30, 2026, totaled $2.78 billion and were primarily related to 737 aircraft.
The 777X program remains a persistent problem, running seven years late with an expected entry into service in 2027, driven by FAA scrutiny, design changes and part cracks.
Ongoing trade tensions between the United States and China pose an additional risk, as any escalation in disputes could delay deliveries, hurt revenues and increase inventory costs.
Boeing’s earnings track record has been uneven, with the company beating estimates in just one of the trailing four quarters and missing in the other three, producing an average negative earnings surprise of 113.46%.
The Zacks Consensus Estimate for Boeing’s 2026 earnings per share implies a year-over-year improvement of 91.73%, reflecting expectations of continued operational recovery throughout the year.
By comparison, the consensus estimate for Lockheed Martin’s 2026 EPS calls for year-over-year growth of 31.3%, while RTX’s consensus estimate implies a year-over-year rise of 14.8%.
Boeing’s current ratio stands at 1.14, modestly above the industry average of 1.12, suggesting the company can meet immediate financial obligations without liquidating long-term assets.
On valuation, Boeing’s forward 12-month price-to-sales ratio of 1.73x represents a notable discount to the industry average of 2.67x, indicating investors are paying less relative to expected sales growth.
Given current execution challenges, new investors may want to wait for a better entry point, while existing holders of this Zacks Rank 3 (Hold) stock may consider retaining their positions given solid liquidity and earnings growth expectations.
