The Boeing Stock Forecast has turned bullish in recent months, with Boeing Co. (NYSE:BA) shares soaring 25.4% over the past six months. This performance outpaced both the Zacks aerospace-defense industry’s 20.8% gain and the broader Zacks Aerospace sector’s 22% rise. It also exceeded the S&P 500’s return of 7.3% in the same period.
Rivals have also enjoyed strong momentum. Embraer S.A. (NYSE:ERJ) stock climbed 34% in the same timeframe, while Airbus SE (OTCMKTS:EADSY) rose 21.5%. Still, Boeing remains the headline story given its record-breaking contracts and pivotal role in the U.S. aerospace market.
What Drove Boeing Stock Higher?
The recent rally in Boeing stock was fueled by a wave of large commercial and defense orders. In early 2025, the Japan Self-Defense Forces ordered 17 CH-47 Block II Chinooks. Soon after, Malaysia Aviation Group purchased 18 737-8 and 12 737-10 jets, while Japan Airlines confirmed 17 more 737-8 aircraft. BOC Aviation also placed an order for 50 737-8 jets.
In March 2025, Boeing won a contract from the U.S. Air Force to build its next-generation fighter aircraft. Two months later, Qatar Airways announced a record-setting agreement to buy up to 210 widebody jets, including the largest-ever order for 787 Dreamliners.
The company’s defense and space operations also strengthened. Boeing delivered the O3b mPOWER satellites to SES and secured a $2.8 billion U.S. military satellite contract. More recently, it delivered the Satelit Nusantara Lima to Indonesia. These wins bolstered investor confidence and helped extend Boeing’s rally.
Growth Prospects for Boeing
Looking ahead, the Boeing Stock Forecast suggests that long-term demand should remain robust. According to Boeing’s latest Commercial Market Outlook, global demand for 43,600 new commercial aircraft is expected through 2044, driven by 4.2% annual passenger growth. This positions Boeing to benefit from a multi-decade uptrend in global air travel.
Meanwhile, Boeing Defense, Space & Security (BDS) reported $19 billion in new contract awards in the second quarter of 2025, lifting its backlog to $74 billion. This segment also posted a 10% year-over-year revenue increase, highlighting its importance in stabilizing Boeing’s earnings.
Consensus estimates peg Boeing’s long-term earnings growth rate at 17.9%, surpassing the industry’s average of 15.9%. Near-term projections also point to strength, with third-quarter 2025 sales expected to rise 19.2% year over year and full-year 2025 sales projected to jump 27.8%.
Risks to the Rally
Despite optimism, investors should weigh risks in the Boeing Stock Forecast. Persistent supply-chain issues—particularly shortages of critical parts—continue to slow production. Trade tensions between the U.S. and China also pose threats, as Boeing has about 20 737-8 aircraft in inventory for Chinese customers that could face delivery delays if relations worsen.
Another concern is Boeing’s weak return on invested capital (ROIC). The company currently reports a negative ROIC, lagging behind peers. Embraer’s ROIC stands at 13.63 and Airbus at 4.86, underscoring Boeing’s efficiency gap.
Boeing Stock’s Valuation and Investor Outlook
On the valuation side, Boeing trades at a forward 12-month price-to-sales ratio of 1.84. This is below the industry average of 2.25, suggesting BA stock may be undervalued relative to peers. However, it remains above Boeing’s five-year median of 1.44, implying a stretched valuation compared with its historical norm.
Final Verdict
The Boeing Stock Forecast remains a mixed bag. On one hand, record aircraft orders, defense contracts, and long-term commercial demand support a strong growth outlook. On the other, supply-chain headwinds, U.S.-China trade tensions, and weak ROIC present real challenges.
For existing shareholders, holding onto Boeing stock appears reasonable given recent momentum and solid sales potential. However, new investors may want to wait for a more favorable entry point, as near-term earnings revisions and operational risks could create volatility.
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