How to Approach Boeing Until the 737 MAX's Are Back in the Sky

Author:
Publish date:
Video Duration:
57

Airbus has topped rival Boeing (BA) - Get Report as the world’s largest planemaker for the first time since 2011, a result that wasn't unexpected as Boeing remains mired in the 737 MAX crisis.

According to Reuters, Airbus delivered 863 aircraft in 2019. Reuters cited airport and tracking sources. Deliveries rose 7.9% from 800 aircraft in 2018.

Boeing, meanwhile, through the first 11 months of 2019 delivered just 345 aircraft, down from 704 the year before. Boeing has yet to release deliveries data for the full year.

And this comes after the negative headlines that have been plaguing Boeing -- from the issues with the 737 MAX aircraft to the executives who have stepped down in the past year.

Shares of Boeing are down around 9.5% in the past three months but are up over 2.6% over the past year.


"I think a lot of the negativity has already been priced in. I think outside, of course, them absolutely shutting down the 737 MAX program, which I think a lot of us, a lot of analysts, I think that maybe the stock goes to $275 if that happens. But I think down here it hangs in really well. A lot of that negative news is priced in and from a purely a trade perspective, if you look back in the last six to eight months, this is really kind of the interesting spot where you'd start maybe buying a little shares purely from a trade though because I think up until that those planes get back in the air and that gets the proper certification, I view it more as a trade than an investment," said Jeff Marks, senior portfolio analyst with Action Alerts PLUS.  

Online real estate platform CrowdStreet delivers investors a new way to diversify their portfolios with real estate. Individual investors can use CrowdStreet’s leading online marketplace to connect with a wide array of commercial real estate opportunities and projects to make investing in real estate easy! Download the Real Estate Guide.