Boeing: Dow’s Best Performer in 2019



Top Dow performer

So far, Boeing (BA) shares have gained solid momentum in 2019. The stock has risen 33.4% in 2019 and outperformed the returns of major US indexes including the Dow Jones, the NASDAQ, and the S&P 500.

The Dow, NASDAQ, and S&P 500 indexes have risen 10.6%, 14.2%, and 11.3%, respectively, YTD (year-to-date). Boeing’s shares have also outperformed the returns of the Industrial Select Sector SPDR ETF (XLI), which has risen 17.3% during the same period.

Boeing is the best performer among the stocks that make up the Dow 30 Index. With a YTD gain of 21.3%, IBM (IBM) is the second-best performer, followed by Cisco (CSCO) and United Technologies (UTX) with gains of 18.4% and 18.3%, respectively.

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What’s driving the optimism?

The optimism surrounding the stock is likely due to Boeing’s overwhelmingly positive fourth-quarter results reported on January 30. Boeing’s top and bottom-line results beat analysts’ estimates and marked a significant improvement YoY (year-over-year).

The massive upswing in Boeing’s share price is likely due to growing optimism about its future performance. Analysts are optimistic that Boeing has solved its issues with suppliers, which should help it increase its production. In January, Boeing revealed that it plans to increase the monthly production of its 737 and 787 models.

With increased output, the company will be able to make and ship more jets, which will likely result in higher revenues and cash flows. Boeing delivered 806 aircraft last year—the highest number in its history.

Going forward, analysts are bullish about the stock’s future performance. Analysts expect Boeing’s first-quarter earnings to rise 18.1% due to 12.2% higher revenues. As a result, investors’ gained confidence in Boeing stock.


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