Why Is Boeing Stock Seeing Blue Skies Today?

The Boeing Company BA shares are trading higher on Tuesday. Boeing announced it has won contracts from major airline operators.

In particular, the company disclosed an order for 20 additional 777-9 planes from Qatar Airways.

The 777-9, the largest in its series, offers capacity for 426 passengers in a two-class setup and a range of 7,295 nautical miles (13,510 km), opening new growth opportunities for operators.

The order, increasing Qatar Airways’ 777X fleet to nearly 100 planes, was finalized this year and remains listed as unidentified on Boeing’s Orders & Deliveries website.

In a separate release, Boeing and Macquarie AirFinance revealed that the lessor had placed its first direct order for Boeing aircraft, purchasing 20 737-8s.

This order doubles Macquarie AirFinance’s 737-8 holdings, previously acquired from ALAFCO in 2023.

The 737 MAX family supports fleet modernization with up to 20% reductions in fuel use and carbon emissions compared to older models.

The company has also received orders from various airlines, including National Airlines, Korean Air, and Japan Airlines.

Yesterday, Boeing disclosed that it forecasts a 3% increase in airplane deliveries over the next 20 years, estimating a need for nearly 44,000 new commercial airplanes by 2043.

The 2024 Commercial Market Outlook (CMO) forecasts that passenger air traffic will increase by an average of 4.7% annually over the next two decades compared to 2023.

Boeing stock has lost around 14% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF ITA and Invesco Aerospace & Defense ETF PPA.

BA Stock Prediction 2024

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Boeing’s revenue has grown at an average rate of 8.77% annually over the past 5 years. The average 1-year price target from analysts is $223.9, representing an expected 21.19% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Boeing have seen an annualized return of -6.88%, underperforming the S&P500 index by 14.92%. This compares to 8.51% growth in the overall Industrials sector. Boeing has a beta of 1.26.

Price Action: BA shares are up 3.5% at $185.17 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image by Miguel Lagoa via Shutterstock