Opinions
Greg Newman
Boeing
BA-N
TOP PICK
Aug 01, 2024
Stock price when the opinion was issued
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Company under pressure - recent announcements to raise debt and equity. Working capital has fallen short lately. Recent union negotiations time consuming. However, demand for products high. Will depend on how well company executes in the next 1-2 years. Time will tell. Would recommend watching for now.
Not a bad sign. On a 5-year chart, you can see somewhat of a floor in the low $120s. It's bounced off that. Is there potential? Yes, that bounce plus positive divergence gives you potential to perhaps reach the top of that trading range (+/- $240).
LMT has definitely done better over the last couple of years. BA is a bit of a recovery play here. In general, where we are in the cycle, he thinks we're in phase 2 but on the cusp of phase 3. Phase 2 is typically where materials, industrials, and technology continue to do well.
These names should do OK, but we are approaching the end of the cycle. Ultimately, at some point, we'll see rotation out of these industrial plays.
The CFO recently made comments: the troubled 737 is closer to resuming production, as the 787 could increase production later this year. Really, the 737 is more important. Also, their ailing defence business is starting to stabilize and recover, though their commercial business could improve. Maybe cash flow will improve; there are signs it is already. They won't be hit by tariffs, because 80-90% of their supply chain is in the US. They have a half-trillion-dollar backlog Last Friday, the US Air Force awarded Boeing the contract for fighter jets. He'd like to see a few good quarters of stronger results, and it's early in this turnaround though it's getting its act together. Also, Boeing enjoys little competition and airplane demand is strong.
The Boeing Archives houses a vast collection of Boeing artifacts that illustrate the defining moments of our past. "The Boeing Archives Presents" brings to life our history through the photos, film, documents and relics that preserve our company's journey. Maintained to capture where we've been and influence where we're going, the Boeing Archives is one of the largest collections of its kind anywhere in the world. Social media mentions are up 18% in the past 24h.
A leading global aerospace company and top U.S. exporter, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. Our U.S. and global workforce and supplier base drive innovation, economic opportunity, sustainability and community impact. Boeing is committed to fostering a culture based on our core values of safety, quality and integrity.
Hold your nose with this one. Horrible performer for years. Big loss recently, weaker revenue. Commercial and defense remain challenged, behind schedule and above cost targets. Scrutiny on the door that just blew out. But notice that when the door did blow out, stock didn't go that much lower. Not a lot more downside. No dividend.
(Analysts’ price target is $215.59)Just replaced CEO with a very seasoned engineer. A name that's necessary to the US supply chain. A fixable company, and thinks it will be with the right leadership. Analysts assume 2025-2027 growth is 56% EPS. Priced well at 22x 2026. Want to buy the great names when they've had a fall. Don't need to buy right away or too early, but the cycle will turn for this company.