We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where The Boeing Company (NYSE:BA) stands against the other stocks.
Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.
The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.
Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.
The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.
To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.
A commercial jetliner parked at an airport, reflecting the companies success in aviation.
The Boeing Company (NYSE:BA)
The Boeing Company (NYSE:BA) saw its share prices decline by 6.56 percent on Tuesday to finish at $158.9 apiece as investors were parked for safety amid the ongoing trade war between the United States and its trading partners.
The Boeing Company (NYSE:BA), one of the largest aircraft makers globally, could bear the brunt of higher prices in raw materials to manufacture its aircraft and, potentially, lower sales from the aviation industry that is set to be significantly impacted by rising gasoline prices.
With the tariffs now in place, this could drive customers to its largest competitor, Airbus, which is headquartered in the Netherlands.
Previously, BA Chief Executive Officer Kelly Ortberg said that any more tariffs could further hurt its sales in China, which is one of its largest markets.
Additionally, The Boeing Company (NYSE:BA) currently operates a composite parts factory in Canada, one of the countries facing US trade threats.
Overall BA ranks 8th on our list of Tuesday’s worst performers. While we acknowledge the potential of BA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.