Is Boeing Ready For Takeoff? Why This Investor Bought More Stock

With Boeing Co BA shares down about 12% year-to-date, Hightower Advisors' Stephanie Link stepped in and bought more.

"It usually trades on the 737 Max news and 787 production and delivery status and they're making progress on both," Link said Tuesday on CNBC.

She expects the stock to get a lift from certification in China over the next few months.

See Also: Boeing Tests Suppliers On 787 Output Hikes

Link noted the stock also often trades on free cash flow, which came in above expectations last quarter. Boeing reported nearly $500 million in free cash flow, which was up from negative free cash flow of $4.3 billion in the same quarter of 2020.

"That's only going to get better as we reopen," Link said. Boeing has $16 billion in cash and just paid down $4 billion in debt, she added.

Link said Boeing doesn't get much credit for its defense business, which represents about 45% of total revenues.

"I like this company, I like the fundamentals and it's down 12%, so I'm buying more," Link said.

BA Price Action: Boeing has traded between $167.58 and $278.56 over a 52-week period.

The stock was up 0.74% at $176.82 at time of publication.

Photo: courtesy of Boeing.