I’ve been bullish on The Boeing Company (NYSE:BA) for quite some time, due to a number of key fundamental drivers I see as long-term catalysts that will continue to propel one of the world’s largest producers of aircraft forward.
Recent developments with the company’s 737 Max aircraft have led to a marked selloff by Boeing investors, offering a window of opportunity for value investors that I see as promising, given the relatively strong fundamentals of the company and the large backlog of orders for other planes which will inevitably keep the company busy for years to come.
The obvious issue with the 737 Max plane being grounded by the FAA and airlines choosing not to fly this aircraft, or suspend/cancel orders is a public image problem.
The market may or may not believe that Boeing can overcome these issues, and many investors rightly wonder if the issues the company face will affect other aircraft and other business segments Boeing operates in.
This key issue has driven Boeing’s share price down approximately 25% from its peak early last year, a remarkable decline.
These headwinds are likely to continue, and the exact timeline of when the FAA, airlines, and the investing public put their faith back into Boeing is questionable.
That being said, for investors looking at the entire picture (all the business lines Boeing is in, and the scale and range of aircraft produced by this manufacturer), buying this stock at a 25% discount could turn out to be a very profitable trade in the long run.
Invest wisely, my friends.