Boeing stock had a tremendous 2017, as jet sales surged on a strengthening global economy. Factor in the company's roughly 30% effective tax rate and the stock could be a big winner from corporate tax reform. All of these factors have helped to lift Boeing's shares.
Full Answer
Why is Boeing stock on a wild ride?
So what. Shares of Boeing are down more than 50% year to date, hit by a one-two punch of issues with its 737 MAX and airlines scaling back flying due to …
Is Boeing stock a buy?
Jan 30, 2018 · Boeing stock had a tremendous 2017, as jet sales surged on a strengthening global economy. Factor in the company's roughly 30% effective tax rate and the stock could be a big winner from corporate...
What was Boeing's earnings per share in Q3?
In the big picture, strong fourth-quarter numbers and a healthy 2019 guide together imply that Boeing stock will hit all-time highs in 2019. The share price peaked a …
Is Boeing going to bring back its dividend?
7 hours ago · What happened. Boeing ( BA -8.78%) is a mess, and on a day in the markets when fear is triumphing over greed, investors seem to have little desire to hold on and ride out a restructuring campaign ...
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Boeing stock is certainly no bargain on a valuation basis. The trailing price-to-earnings ratio for BA is over 40 and stands at by far the most expensive level of the past 10 years.
Big Trading Range
Options trades are signaling there could be even more room for Boeing to rise, based on expiration set for March 16. The long straddle options strategy is suggesting the stock could rise or fall by roughly 8%, putting the stock in a range of $311 to $370. The cost to buy one put and one call is about $30.
Bullish Bets
What seems most striking is that calls are favored by nearly 4 to 1, with 2,200 contracts of open interest, compared to only 655 for the puts at the $340 strike. Despite the small number of contracts, the position carries a notional value of roughly $3.2 million, which is a decent amount.
Bearish Technical Patterns
Despite, some of the optimism in the options market, the chart suggests the stock may be overbought, with a relative strength index reading over 70. Should shares of Boeing fall after results, the chart suggests technical support would come at roughly $300, a decline of about 12% from its current price.
BA Is Overbought
Boeing stock is certainly no bargain on a valuation basis. The trailing price-to-earnings ratio for BA is over 40 and stands at by far the most expensive level of the past 10 years. Similar metrics, such as price to sales and price to free cash flow, are also similarly expensive.
The Bottom Line on Boeing Stock
BA will go ex-dividend in early November which is important for those who short the stock who will be liable for the dividend. To avoid this possibility, selling a bearish call spread using options would be a valid alternative.
Lawmakers might be done grilling the company over the 737 MAX
Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. He spends a lot of time these days focused on the industrials and financials.
What happened
Shares of Boeing ( NYSE:BA) traded up more than 5% on Monday on optimism that the worst from Congress might be over for the company as it deals with the 737 MAX grounding. Boeing shares are down more than 20% over the past six months, and even the slightest hint of good news is enough to send the stock higher.
So what
It's been almost a year since the March 10, 2019, crash of an Ethiopian Airlines 737 MAX that killed all on board and prompted regulators to pull the plane out of service. Boeing has failed to meet a series of internal deadlines to resolve the issues with the plane and get it airborne again.
Now what
Boeing has taken a severe reputational and financial hit because of the MAX, with the financial ramifications likely to weigh on results well into 2021, if not beyond. But the company does have an impressive portfolio of commercial aerospace and defense platforms, and should be a long-term winner.
How much did Boeing pay for the 737 Max?
The requests come after production issues were found on both jets. On Jan. 7, Boeing agreed to pay over $2.5 billion to settle Justice Department fraud charges related to its 737 Max. The company was charged with one count of conspiracy to defraud the U.S. related to the plane's certification.
What are the House Democrats asking for?
House Democrats are asking for FAA inspection records from Boeing's 737 and 787 Dreamliner production lines as well as audit results and supervision records. The requests come after production issues were found on both jets.
The aviation giant nearly doubled its value last year, and looks set for a strong 2018, too
Industrial sector focus. I write about electrical equipment, transportation, and multi-industry industrial stocks. Engineer, investment manager and property developer. I'm a firm believer that there is something noble about the industrial sector. Blue collar workers physically making a better world.
What happened
By any standards, The Boeing Company ( NYSE:BA) had an outstanding 2017. The stock's 89% rise is startling for a company of such size and a testimony to how many things went right for the company. I'm going to pick out a few of the highlights of 2017.
So what
Based on the record production rate of 763 aircraft in 2017, Boeing's backlog of 5,864 aircraft represents 7.7 years of production.
Now what
The International Air Transport Association (IATA) forecasts that passenger growth will increase 6% in 2018 from a 7.5% increase in 2017, with airlines' net profit estimated to rise 11% to $38.4 billion in 2018. That's good news for Boeing, and suggests the potential for ongoing growth in its order book.
