Why Is Everyone Talking About Boeing Stock?
The aerospace giant Boeing (NYSE: BA) fascinates investors, because it's either a fantastic value opportunity wrapped up in a "self-help" story or a troubled company whose most significant challenges are yet to come. Here's what you need to know before buying the stock.
The bulls' case for the stock rests on the idea that things can hardly get worse for the company. In addition, so much pessimism has been built into the stock that all it would take is some good news in the coming year and the stock could fly. The argument rests on three points.
First, the commercial aviation market is continuing a multi-year recovery as flight departures return to pre-pandemic levels. Meanwhile, Boeing has a backlog of 3,365 Boeing 737 aircraft, its narrow-body workhorse of the skies. The wide-body 787 has a backlog of 405 aircraft, and the wide-body 777 and 777X have a combined backlog of 224 aircraft. There's no issue with end demand at Boeing; given its position as one of only two major players (Airbus also has issues ramping production), the company has every opportunity to grow. For the moment, other manufacturers such as COMAC, Irkut and Embraer are mainly regional players. The difficulty of breaking into the Boeing/Airbus duopoly was highlighted by the huge ramp in sales in of the Airbus A220, after it was bought from Bombardier -- formerly known as the Bombardier C-Series.
Source Fool.com
