Why Now May Be the Right Time to Buy Boeing
Boeing's (NYSE: BA) valuation peaked in March 2019, after two fatal crashes yanked its 737 MAX plane from the market. Cancelled orders and costly fixes to the MAX's faulty systems and software forced the company into a large amount of debt, further fueling investors' fears. But now, monthly order data shows customers are coming back, an early sign that Boeing could be turning a corner.
The Boeing 737 MAX is returning to the skies. Image source: Boeing.
Since the 737 is Boeing's highest-volume aircraft, the grounding caused a significant collapse in total new orders in 2019. However, orders didn't just fall for this model; the troubles scared customers away from Boeing in general, bringing numbers down in every single category versus the prior year. But with the MAX out of the woods and the pandemic slowly but surely resolving, the company can begin to look forward to a return to earnings growth.
Source Fool.com
