It’s been two long years since they did it last, but Boeing (BA) has finally managed to pull ahead of Airbus (AIR) and beat them in monthly deliveries 26 planes to Airbus’ 21. Boeing delivered 21 737 MAX’s which is 6 less than December. It will be a big deal for Boeing if they can get rid of most of their backlog of the 737 MAX over the course of the year. Beating Airbus for the month is a pretty big deal for Boeing since it could mark the start of them getting back on track to really compete with Airbus again rather than just being in survival mode.
That being said both manufacturers are in for some tough times over the next year or 2 with both their aircraft deliveries being significantly lower than pre Covid numbers. Both of these companies will likely have to go through some serious reorganizing before Corona is done in order to put themselves in a position to be successful once things go back to ‘normal’ as they are both bleeding cash like crazy and airplane demand isn’t likely to see any significant increases in the near future with airlines trying to preserve cash as well. This could potentially lead to a lot of airline manufacturers being good money makers in the future as they are one of a few industries that will be slower to recover from Corona.
The upside for Boeing is that this year they will hopefully be able to put the MAX groundings behind them for good and get back to focusing on growing their commercial airlines division back into the highly sought after and respected company it used to be, while not having to rely on their Defence divisions to try and stop the bleeding anymore. Boeing still has a long way to go to get back to profitability but getting back on the same level as Airbus is a big step in the right direction.
Boeing in it’s current state is definitely not a stock I would usually buy, they neither make money or pay a dividend at the moment which is usually my two baseline criteria for even looking at a stock since I revamped my strategy in 2019. That being said if you are willing to take risks and not making money or paying a dividend doesn’t bother you in the short term Boeing could potentially be a good long-term play. I am already long on Boeing since well before Coronavirus (and very down on my position) and probably won’t buy more unless they are priced at what I feel is an extremely good deal, but I also don’t plan on getting rid of my position anytime soon either.
Boeing (BA)- Share Price $210.66/ Market Cap $122.81 Billion/ 52 Week Range $89.00-$349.95/ EPS -$20.73/ P/E N/A/ Dividend N/A
Boeing is an American multinational corporation that designs, manufactures and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment and missiles worldwide. They also provide leasing and product support services. Boeing is one of the largest aerospace manufacturers in the world and is the second largest defence contractor in the world as well as the largest exporter in the United States by dollar value. Boeing is incorporated in Delaware and is part of the Dow Jones Industrial Average.
Boeing was founded by William Boeing in Seattle, Washington on July 15, 1916. They are currently headquartered in Chicago, Illinois. The company is organized into 5 Primary Division: Boeing Commercial Airlines (BCA), Boeing Defense, Space & Security (BDS), Engineering Operations & Technology, Boeing Capital, and Boeing Shared Services Group.
Disclaimer: All share prices are as of February 11, 2021. I am currently long on Boeing. I would probably not look at buying this stock unless you have done a lot of research and have a high tolerance for risk.
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