Stock markets are highly bearish on Boeing’s (BA) prospects. After it settled its union strike, BA stock fell from $160 to close last week at $140.19. The short float is 2.53%.
Boeing lost 10% since the elections because markets are fearful that the trade relations between the U.S. and China will worsen. Still, Boeing has only 2% of its backlog in China.
Investors are pricing in the headwinds from Trump’s tariffs. For example, border tariffs of 10% to 20% and 60% against China’s goods would hurt Boeing.
Avoid BA stock.
In the energy sector, Chevron (CVX) has a short interest of 3.28%. Although shares are trading near a 52-week high, the valuation is at a non-GAAP P/E of 14.11 times. By comparison, the sector median is 11.13 times.
CVX stock is attractive if WTI crude prices improve.
IBM (IBM) has a short float of 2.27%. The stock slumped to around $205. This is due partly to the $1.67 a share quarterly dividend payable to investors of record on Nov. 12, 2024.
IBM stock is on a firm downtrend. Wait for the company to post strong quarterly results before considering the company again.