Bear Market Buy: Why Boeing Stock Looks Attractive
Another quarter and another quietly positive earnings report have come from the aerospace giant. Boeing (NYSE: BA) certainly has challenges to work through this year. Still, under CEO Dave Calhoun, Boeing is quietly regaining the trust of investors, and merely executing its medium-term plans could lead to substantive share price appreciation. Here's how Boeing is becoming investable again.
Management lauded its return to free cash flow (FCF) generation in 2022, with $2.3 billion generated, compared to an outflow of $4 billion in 2021 and a whopping $20 billion outflow in 2020.It's a good result in the context of the company's plan to generate $10 billion in FCF at some point between 2025 & 2026.
The company's CFO, Brian West, put it succinctly on the recent earnings call, saying that "the overall plan continues to be, deliver airplanes, generate cash, pay down debt." It's not hard to see why. Due to the combination of the well-documented grounding of the 737 MAX, followed by the imposition of travel restrictions globally, Boeing's earnings and cash flow slumped while its debt ballooned.
Source Fool.com
