Why Jim Cramer Just Bought More Boeing Shares

With Boeing Co BA having fallen nearly 10% year-to-date, Jim Cramer decided to add to his position Friday morning.

"We are making a small purchase this morning because we see a dislocation in value at these levels," Cramer said Friday in a letter to members of CNBC's "Investing Club."

Boeing's underperformance in 2021 has made the position’s weighting in Cramer's portfolio very small, he noted.

"We like Boeing right here because the stock has now washed out nearly all the gains from earlier in the month that were attributed to China’s issuance of an airworthiness directive for the 737 MAX," he said.

China's aviation authority issued an airworthiness directive for the Boeing 737 Max at the beginning of the month. The airworthiness directive indicates the 737 Max could soon be flying in China again after being grounded for more than two and a half years.

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Despite the news, Boeing shares have continued to underperform the broader market, trading higher by 1.4% since the announcement versus a 3.8% gain in the S&P 500, according to Cramer.

"Given the magnitude of the announcement, this underperformance seems wrong to us."

Cramer went ahead and bought 50 shares of Boeing around the $193 level Friday morning. He anticipates a strong year ahead for the aerospace giant.

"We believe 2022 will be a stronger year for Boeing as deliveries increase, free cash flow inflects, and international travel recovers."

BA Price Action: Boeing has traded as high as $278.56 and as low as $188 over a 52-week period.

The stock was up 1.44% at $193.58 at time of publication.

Photo: courtesy of Boeing.