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Boeing Is the Second-Best Dow 30 Performer


Jan. 25 2019, Updated 7:31 a.m. ET

Boeing stock soars

Shares of the Boeing Company (BA) have been on quite a ride since the beginning of this year. In 2019 so far, the stock has risen ~11%, outperforming the returns of major US indexes such as the Dow, the NASDAQ, and the S&P 500.

YTD (year-to-date), the Dow, the NASDAQ, and the S&P 500 are up 4.6%, 5.8%, and 5%, respectively.

Furthermore, Boeing is the second-strongest performer among the stocks that make up the Dow 30 Index. With a YTD gain of 18.3%, Goldman Sachs (GS) is the top performer. Pharmaceutical company Pfizer (PFE) and tech giant Apple (AAPL) are the worst performers with YTD losses of 3.2% and 2.8%, respectively.

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The massive upswing in Boeing’s share price is likely the result of growing optimism about the company’s future performance. Analysts are optimistic that the company has solved its issues with suppliers, which should help it ramp up its production. Notably, the company recently revealed that it had raised the monthly production rates for its 737 and 787 Dreamliner models.

As a result of its production enhancements, the company will be able to make more and more deliveries, generating higher revenues and cash flows. Boeing made record deliveries of 806 aircraft last year.

Going forward, analysts are bullish about the stock and expect its fourth-quarter earnings to rise ~50% on 6.2% higher revenue. All this has made investors optimistic about Boeing’s growth prospects.

2018 performance

Boeing stock remained volatile last year due to multiple headwinds, including trade war worries, the Lion Air tragedy in October, and the broader market sell-off in December. Despite these headwinds, Boeing managed to end the year with a positive return of 9.4%. The stock was one of the few Dow 30 stocks that registered rises last year.

The stock also outperformed its top peers (ITA) Lockheed Martin (LMT) and General Dynamics (GD), which fell 18.4% and 22.7%, respectively, last year.


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