The following questions are for the company BOEING Ticker s

The following questions are for the company : BOEING (Ticker symbol: BA)

Perform Research on the company

-First, explain which macroeconomic factors or economic issues should have the largest impact on your company’s sales and profitability. This may include cyclical changes or structural changes.

-From www.finance.yahoo.com (you can also get similar information using www.morningstar.com or www.nasdaq.com):

First, click on the “quote look up “box and enter your company’s ticker symbol. Then, download a chart comparing your company’s performance with its two competitors over the last 3 months. In the chart menu, go to “interactive chart” and download a line chart of the company’s stock prices and then click on “comparison” and add the ticker symbols for two competitors of your company. (Note that, for comparison purposes, your chart shows % stock returns rather than stock prices. % returns are calculated as % price changes adjusted from dividends when relevant)

Then download a chart that compares your company’s performance with that of the S&P 500 index over the last 3 months (Note that when you download this chart that compares both, the chart shows % returns rather than prices.).

Analyze the two charts you downloaded to:

-Compare % returns between your company and its competitors, and discuss why one company may have a better return performance than the others. To support your analysis,

-Compare your company’s returns over the last three months with that of the general stock market (proxied by the S&P 500 index). Are your company’s returns in line with that of the general stock market? Can you explain why your company stock may overperform or underperform compared to the overall stock Market?

Solution

1) The macroeconomic factors that can influence the revenue and profitability growth for the company are:-

2) In comparing Boeing with other competitors such as Airbus which is not listed in NYSE but is listed in Europe, the returns generated by Boeing are in line with competitor due to similar profitability, order book. The effect of newer initiatives such as formation of joint ventures which will give them an edge over competition has not yet seen an increase in returns.

3) The company has also provided lower returns than the market (S&P 500) as it has shown muted profitability and also the aircraft demand is soft. The stock has performed worse specially of late because of lesser than expected increase in revenue and profits as compared to the market average.