The case for buying Boeing (BA 5.29%) stock is based on the idea that it’s a good way to play a recovery in the global economy from the COVID-19 pandemic. That’s a good case in itself, provided you are confident that air travel will recover to its former glories. Let’s take a look at Boeing in light of these considerations. Boeing trading offers a gateway to the dynamic world of finance and the opportunity to invest in one of the most prominent aerospace companies in the world.

  1. However, the biggest problem Boeing has right now is that it’s ill-positioned for the type of recovery that most commentators are expecting.
  2. Germany became the eighth customer, ordering five P-8s in July.
  3. That means Boeing stock’s performance will be driven solely by changes in the company’s market cap, with no help from dividends or share buybacks.
  4. FactSet analysts had projected a loss of 36 cents per share on revenue of $16.54 billion.

Southwest Airlines (LUV), Ireland’s Ryanair (RYAAY), Alaska Air Group (ALK), United Airlines (UAL), Allegiant Air and Dubai Aerospace Enterprise have all ordered more 737 Max jets. Chinese regulators, the first to ground the Max, have been slow to recertify the aircraft even as test flights started in early August. Adam Levine-Weinberg has no position in any of the stocks mentioned.

Boeing’s 737 MAX 9 Is Back in Service. The Crisis Is Far From Over.

He has extensive executive, management, and operational experience. Prior to his current positions with Boeing, Calhoun served as senior managing director and head of portfolio management at The Blackstone Group since January 2014. He also was CEO at Neilsen Holdings PLC (NLSN) and vice chairman of General Electric Co. (GE). Investors looking for more stocks to buy can find companies with stronger, more consistent earnings growth and better stock technicals.

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As the 737 Max takes to the skies once again in Ethiopia, China has yet to approve the jet’s return to service.

Our top picks for buying The Boeing Company stock

That’s unfortunate for Boeing because the 737 MAX debacle has given airlines a reason to order Airbus A320 NEO aircraft instead. All told, everything points to Boeing’s prospects being intrinsically tied to commercial aviation, and in particular the market for new airplane orders. As such, given a scenario where air traffic comes back but airplane orders lag because airplanes continue to use legacy aircraft, Boeing could underperform.

The 737 MAX is supposed to be the narrow-body workhorse of the skies alongside the Airbus A320 NEO family. However, the aircraft’s grounding following some high-profile crashes damaged confidence, and now Boeing is struggling to ramp production to deliver its backlog. Worse, it’s come under criticism from leading figures trading of commodities in the industry (Ryanair’s CEO Michael O’Leary and giant leasing company Avolon CEO  Domhnal Slattery) over its leadership and its failure to deliver aircraft on time. The company is under pressure to show regulators and customers that it takes safety seriously and to reassure investors about its financial outlook.

To help preserve cash, Boeing suspended its dividend on March 20, 2020. It also extended until further notice its pause on share buybacks. But the company’s $3.9 billion Air Force One contract has thrust some Boeing issues once again into the spotlight. The result has left BA stock in a very long consolidation, according to MarketSmith analysis. But the stock has yet to form a bottom to its consolidation, or anything that looks like an attempt to move up the right side of a possible base pattern.

New Rank-Based ScoringMarketRank™ is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company’s weighted average against that of other companies. Management has said paying down debt is a priority before the company can resume payouts. The aerospace giant is also considering a stock sale to help pay down debt accrued by the 737 Max grounding.

Germany became the eighth customer, ordering five P-8s in July. The United Arab Emirates will receive Boeing EA-18G Growler electronic warfare planes as part of a major U.S. arms deal after normalizing ties with Israel last year. Improving ties between Israel and other U.S. allies in the Mideast could unlock more deals. BA stock has been on a wild ride, hit first by the Boeing 737 Max fallout, then by the global travel recession caused by the Covid-19 pandemic.

Boeing is also a leader in innovation, leveraging its many decades and avenues of experience to further aerospace and defense technology. Among the many innovations is the MQ-25 Stingray which will be the world’s first autonomous aircraft. The Stingray is only one of many areas of research that also include drones and undersea vehicles. Boeing traces its origins to 1916 with the founding of Aero Products Co. by William E. Boeing, who had recently co-developed a single-engine, two-seat seaplane with Conrad Westervelt. The company was renamed Boeing Airplane Co. the following year.

Diversification, careful analysis of market conditions, and staying vigilant to changing circumstances are also vital to successful Boeing trading. However, it is essential to approach Boeing trading with caution, considering the inherent risks and challenges involved. Market volatility, industry factors, operational risks, economic influences, regulatory concerns, company-specific risks, liquidity issues, and unforeseen events can impact the outcome of trades and potentially lead to losses. Boeing trading not only provides investment opportunities but also serves as an economic indicator, contributes to job creation and economic growth, fosters innovative advancements, and influences market sentiment.

It is important to note that no single trading strategy guarantees success in Boeing trading or any form of trading. Each strategy has its own risks and rewards, and traders should consider their risk tolerance, investment goals, and market conditions before employing any particular strategy. Boeing trading holds substantial significance in the financial realm, as it allows investors to tap into the dynamic aviation industry and potentially generate substantial profits.

In conclusion, understanding the complexities of Boeing trading can open doors to potential profits while empowering investors to actively engage in the aerospace industry. With careful consideration of the strategies and risks outlined, individuals can participate in the excitement and potential rewards that Boeing trading offers. In the world of finance, Boeing trading allows individuals and institutions to participate in the fluctuating value of Boeing’s stock and other investment opportunities tied to the company. This can include options, futures, and exchange-traded funds (ETFs) that track Boeing’s performance.

Boeing announced May 13 that the Federal Aviation Administration approved its fixes for the wiring issue and sources told Reuters that the aerospace giant has resumed deliveries of the jet on May 19. While Boeing’s commercial business faces some challenges, its defense business is starting to see some positive trends thanks to foreign military sales. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The EBITDA is a measure of a The Boeing Company’s overall financial performance and is widely used to measure a its profitability. Boeing will see better days, and aviation bulls may want a piece of it in their portfolio. However, a lot of things need to go right for Boeing to flourish in the coming years.