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What's the Beef with: Boeing stock analysis

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Boeing Co BA-Beef

Boeing Co (BA)

“Grounded” the word no airliner wants to hear ever! The multinational company was rocked by tragedy when an Ethiopian airline Boeing 737 MAX, crashed and killed all 157 on board.

This was the second crash of a Boeing 737 Max airplane in as recent as five months which sparked concerns all around the world grounding the 737 MAX. The stock plummeted over the following three days by over 17% from the recent highs as market participants digest the news flows.

The plane will remain grounded as the Federal Aviation Administration (FAA) said the jet maker is working on fixing software which seems to be the faulty.

Earnings and Outlook

Despite a positive earnings season for the company beating analysts’ expectations as Revenue increased by $1.58 Billion and the Q4 2018 (DEC2018) Earnings Per Share (EPS) beat by $0.93 the company might come under pressure from the aftermath of the crash. The next earnings date is scheduled for the 24th of April 2019.

boeing-stock-analysis-seeking-alphaSource - Seeking Alpha

Luckily for investors all is not lost and by looking at the median forecast by analysts the median price forecast is $451.50 which is a 18.37% increase in price form current levels.

Stock Price Forecast

boeing-stock-analysis-cnn-businessSource - CNN Business

Take note: From this point the price action might be more susceptible to news events surrounding the crash. An investigation is still ongoing into the fatal plane crashes and investigators are expected to release a report in the next few days. The Ethiopian government is also set to release their findings into the accident.

Chart life

Looking at the daily chart of The Boeing Company (BA) we can see the sell off and the price action starting to stabilize. The price action is currently finding resistance at the $392.68 technical level and needs to clear this level to support the move higher.

boeing-stock-analysis-beefSource - Bloomberg

 

Portfolio particulars:

  • Portfolio Hold (Current).
  • Portfolio Buy opportunity above $392.68, (Technical Resistance level).
  • #WhatsTheBeef Long term Target price: $415, (Future)

Know your company: The Boeing Company (BA)

  • The Everett factory, also known as Boeing City has its own fire department, security force, fully equipped medical clinic, electrical substations and water treatment plant. The Factory is also the largest building on earth by volume and a Guinness World Record
  • The company’s flagship, the 787 Dreamliner has approximately 3 million parts compared to the Boeing 737 which only has 400 thousand parts.
  • The Boeing 747-8 wing could accommodate the total living space (total floor area) of four, 3 bedrooms/2-bathroom single residence homes (at 1,375 square feet each).

 

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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table

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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) and GT247.com do not warrant the correctness, accuracy, timeliness, reliability or completeness of any information received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities and GT247.com (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.