Boeing stock price has staged a strong comeback in the past two months, moving from a low of $129 in April to $217 today. It has jumped to its highest point since January last year and is almost 70% from its lowest point this year. So, is BA a good company to buy today?
Boeing stock has numerous catalysts
Boeing share price has done well in the past few months, as investors predict a comeback and as the company stays out of trouble. It has had no mechanical issue since last year, meaning that its planes are safe.
The stock has also jumped after the company received orders worth billions of dollars from its Middle East trip. Etihad ordered planes worth $14.8 billion, while Qatar Airways ordered 210 jets worth $96 billion.
These orders have helped the company to stabilize itself this year. However, its backlog remains much lower than that of Airbus, its biggest competitor. This gap will likely grow next month when European officials visit China, where airlines are expected to place up to 500 new planes.
Boeing ended the quarter with a backlog of 5,600 planes currently valued at $460 billion. Its small order book may be a good thing if the company fixes its operations and goes back to normal production. That’s because a customer that orders an Airbus plane today will likely receive it further away than Boeing.
BA stock has key catalysts ahead
Looking ahead, Boeing stock price has numerous catalysts ahead. First, China is negotiating a trade deal with the United States. One potential outcome for the talks will be a big order of Boeing planes, the biggest US exporter.
China may suggest that as a solution to bridge the trade gap between the two countries. Such an order would please Trump, who likes to see such numbers.
The order would also be good for China since it does not want to depend fully on one supplier. Also, it would probably help the country avoid supply cut-off for Comac, its aircraft company.
Third, the company will likely receive approval to manufacture more planes this year. It is now limited to 38 737 planes a month and then increases to 42 later this year. Such an approval will likely boost its stock price.
Further, Boeing’s acquisition of Spirit AeroSystems will close this year. The company hopes to use the buyout to improve quality control and safety since Spirit is one of the biggest suppliers.
The other catalyst for the Boeing stock price is the upcoming Paris Air Show, where the company may receive more orders. For example, it had 286 firm orders and commitments in the 2023 air show, including from Air India, Avolon, and China Airlines.
The most recent results showed that Boeing’s business was stabilizing. Its revenue rose by 18% to $19.5 billion, while its earnings from operations rose to $461 million, while its net loss narrowed to $31 million.
Boeing has a strong balance sheet now, with over $23 billion in cash, while its debt dropped to $53.6 billion.
Boeing stock price analysis
BA chart by TradingView
The Boeing share price has been in a strong bull run in the past few months. It moved from a low of $130 on April 7 to $217 today. It has moved above the important resistance level at $188.85, its highest swing in February this year and July last year.
Boeing stock price has also formed a golden cross pattern as the 50-day and 200-day moving averages crossed each other. The MACD indicator has moved above the zero line, while the Relative Strength Index (RSI) has moved above the overbought level.
Therefore, the stock will likely continue soaring as bulls target the key resistance level at $267, the highest swing in December 2023 and 22% above the current level.
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