Boeing Soars, As Predicted
Home  »  Community News  »  Boeing Soars, As Pre...
Jonathan Yates
Boeing Soars, As Predicted

As predicted in a post Friday and again over the weekend, Boeing soared today, closing up 3.72%, a $3.79 jump.

Boeing fell last week due to a fire on an Ethiopian 787.  The previous posts noted that Boeing had a very strong balance sheet and income statement. There is a tremendous backlog of orders for new and refurbished jets. Boeing is particularly well-placed to profit from growth ahead in the Asian markets, particularly China.  The new Boeing 737 is ideal for serving the regional markets in China.

Even in the worst case, Boeing would still recover.  In addition, the board of directors of would move in the stock fell too much with the ample cash reserves.  The funds would be directed to increasing the dividend and initiating a stock buyback program to reward the shareholders and attract others.

The massive airplane maker is still a good buy in the view of the analyst community.  Deutsche Bank recently raised its target price for Boeing to $125, as reviewed in a recent article.   Boeing closed today at $105.66.

Before Friday, it had been strong year for Boeing.

For 2013, Boeing is up by 41.83%.  Volume today was very strong, as bargain seekers jumped onto the stock.  For long term investors, Boeing is an excellent stock.  It is a stable stock, with institutional ownership being over 75%.  The future of the dividend is also positive, as the payout ratio is low which should result in a much higher dividend.



Share on StockTwits

Leave a reply

Your email address will not be published. Required fields are marked *