Is It Safe? Don't Scrap Boeing on Dreamliner

Boeing, a member of the Dow Jones Industrial Average, has only one competitor in the commercial market: Toulouse, France-based Airbus. The company anticipated defense-budget freezes by moving into growth markets. For example, it has formed an unmanned airborne systems division, which makes aircraft for surveillance and combat.

Boeing's stock has fallen 35% over the past year, in line with the S&P Industrials Index. The shares have a price-to-earnings ratio of 15, equaling the average of the S&P 500 Index. The stock offers an attractive 3.9% dividend yield, and Boeing has consistently boosted its payouts during the past five years.

This "hold"-rated stock belongs on investors' "watch lists." If Boeing shares decline further, it might be time to jump in.

TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.