Boeing Company. New York Stock Exchange: BA 2024 is going through some tough times as the company faces regulatory problems, terrible public relations, regulatory scrutiny from the FAA and NTSB, and a worker strike that costs the company billions of dollars. The aerospace sector leader started 2024 on a high note, trading at $250.15 before a cascade of unfortunate events sent the stock crashing to two-year lows when it fell to $137.03 on November 14, 2024.
Boeing named aerospace veteran Kelly Ortberg, formerly of Rockwell Collins, as its new CEO while reporting a kitchen-sink quarter to set the bar low. The shares have since risen back to $180.72, helping the company trim its losses to just over 30% from last year. Here are four reasons why Boeing could be a comeback story in 2025.
1) The bad news is behind us and the bar will be set low by 2025
The end of a strike by 33,000 machinists on November 4, 2024 helped end a costly shutdown of Boeing 737, 777 and 767 aircraft at the Everett and Renton plants in Seattle. The shutdown cost Boeing about $5.5 billion in profits, pushing the company’s loss to more than $6 billion in its third-quarter 2024 earnings report. That prompted Boeing to raise more than $20 billion in cash and implement a 10% workforce cut, eliminating 17,000 jobs.
On December 17, 2024, Boeing Commercial Airplanes CEO Stephanie Pope announced that all production lines were back online, stating, “We have taken the time to ensure that all manufacturing colleagues are trained and certified, and have stocked at optimal levels for uninterrupted operation.” work.” production.”
The build-up is expected to be gradual by 2025. The company is rumored to be targeting production of its 737 MAX aircraft to 37 aircraft per month by May 2025. Although the company has insisted on methodically ramping up production, critics fear it could happen again. repeating the mistakes of the past, trying to rebuild planes to meet deadlines. Public and reputational perception will be critical moving forward as the company can no longer afford to make mistakes.
2) Boeing’s debt continues to rise by more than half a trillion dollars
Boeing stock forecast today
$190.11
Growth potential 7.40%Moderate purchase
Based on ratings from 24 analysts
| High forecast | US$250.00 |
|---|---|
| Average forecast | $190.11 |
| Low forecast | $85.00 |
Boeing stock forecast details
Even during the strike, Boeing had a backlog of more than 6,200 aircraft, totaling more than half a trillion dollars. Since it was the only American-made game in town, most of its customers had to grin and bear the delay in shipments, hoping for an end to the strike. Some of the largest orders have come from Southwest Airlines Company New York Stock Exchange: LOVE with 432 aircraft; Delta Air Lines Inc. New York Stock Exchange: DALwaiting for 100 planes, Emirates waiting for 240 planes; And United Airlines Holdings Inc. NASDAQ: UAL 497 aircraft are waiting.
The deals keep coming. On December 19, 2024, China Airlines announced an order split between Boeing and Airbus worth approximately $12 billion. The carrier has ordered 10 Boeing 777-9s and four 777-8 freighters, as well as 10 Airbus A350-1000s from rival Airbus. On December 19, 2024, Pegasus Airlines also announced a potential $18 billion order for up to 200 Boeing 737 MAX 10 aircraft, including 100 firm orders and options for an additional 100 aircraft. These are the largest aircraft in the 737 MAX line. This is the largest aircraft purchase deal for the Turkish budget airline, which it has entered into with Boeing instead of Airbus.
3) Lower oil prices could boost airline profits and increase orders for Boeing
The two most expensive operating costs for an airline are labor and fuel. Unlike labor, fuel prices can fluctuate significantly depending on many factors, thereby affecting profits. While airlines may be able to partially hedge against volatility, they are always exposed to changes in oil prices.
Fuel prices influence airline financial planning and forecasts. When prices are low, profits increase, allowing airlines to budget for improving and expanding their fleet. The Trump administration plans to increase oil supplies by lifting restrictions on fracking and drilling on federal lands, adopting Trump’s “baby drill” theme to greatly increase oil and gas production, thereby lowering fuel prices.
4) BA Stock Causes Head and Shoulders Reversal Breakout
The head and shoulders pattern consists of three peaks connected by a neckline on the bounces. The first peak is called the left shoulder, followed by a pullback and bounce that forms the neckline. The second and highest top is the head, which falls down and bounces back off the neck line to form the right shoulder, which is the last bottom top.
Connecting the rebound levels with a horizontal line forms the neckline. A breakout occurs when a stock falls below the neckline. A reversal occurs when the stock bounces off the neck after rising through a right shoulder peak.
BA formed a left shoulder peak at $243.10, a head peak at $167.54, and a right shoulder peak at $196.95. The stock fell back to retest the neckline, hitting a low of $137.03, but rose back to $180.72. The right shoulder intersects with the daily fixed VWAP at $185.98, which is a breakout level if BA can rise and stay above that level. The daily RSI is slowly rising at 77. Fibonacci (Fibonacci retracement support levels are located at $171.16, $159.32, $142.46 and $132.43.
Actionable Option Strategies: Bullish investors may consider using cash-backed puts at Fibonacci retracement support levels to buy the dip. If the stock is distributed, then writing a covered call at high Fibonacci levels implements a wheel strategy to generate income since there are no dividends.
You might want to hear this before you consider Boeing.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat has identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Boeing wasn’t on the list.
While Boeing currently has a Moderate Buy rating among analysts, the top-rated analysts consider these five stocks to be Strong Buys.
View five stocks here
Discover the timeless value of gold with our exclusive 2025 Gold Forecast Report. Find out why gold remains the best investment for protecting wealth from inflation, economic shifts and global uncertainty. Whether you are planning for the future for future generations or looking for a reliable asset in turbulent times, this report will be your essential guide to making informed decisions.
Get this free report