Why This Investor Says A Boeing Recovery Could Send General Electric Stock Higher

Stephanie Link, chief investment strategist and portfolio manager at Hightower Advisors, bought more General Electric Co GE following Boeing Co's BA earnings report, she said Wednesday on CNBC's "Fast Money Halftime Report."

What Happened: Boeing reported quarterly earnings of 40 cents per share, which beat the estimate for a loss of 72 cents per share. The company reported quarterly revenue of $17 billion, which came in below the estimate of $17.78 billion.

Link told CNBC her General Electric buy is a "derivative call on the Boeing recovery."

The numbers in the earnings report show that Boeing is clearly recovering from its COVID-19 pandemic decline, she said.

General Electric also reported a "very solid second quarter yesterday," Link said.

On Tuesday, General Electric reported second-quarter earnings of 5 cents per share, which beat the estimate by a penny. The company reported quarterly revenue of $18.30 billion, which beat the estimate of $18.13 billion. 

Related Link: Recap: General Electric Q2 Earnings

What's Next: As Boeing recovers, General Electric will improve because the company is one of Boeing's largest engine suppliers, Link told CNBC. 

Over the next six to 12 months, Link expects General Electric to be trading at $18 per share. 

GE Price Action: General Electric has traded as high as $14.41 and as low as $5.93 over a 52-week period.

At the close Wednesday, the stock was up 0.38% at $13.13.

See also: How to Buy General Electric (GE) Stock

Photo by 2427999 from Pixabay.