I wrote this article myself, and it expresses my own opinions. Latest Market News Federal judge blocks Biden administration officials from communicating with social media companies Sheetz slashes gas price by 50% to $1.776 per gallon. It operates through the following segments: Commercial Airplanes (BCA), Defense, Space and Security (BDS), Global Services (BGS), and Boeing Capital (BCC). Although the company's operational outlook is improving and its backlog is growing, its shares are considered pricey right now. Over the long term, there is a massive global need for new planes as emerging markets continue to develop and established economies try to become more fuel efficient. Making the world smarter, happier, and richer. The Commercial Airplanes segment includes the development, production, and market of commercial jet aircraft and provides fleet support services, principally to the commercial airline industry worldwide. The company's total debt ballooned by 400% during the crisis, and Boeing desperately needs a surge in new orders and the cash flow that comes with those orders to rebuild its balance sheet. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Shares of Boeing traded down as much as 8% as of early afternoon on Monday, easily surpassing the S&P 500's 2.8% decline. Dow has been investing in more environmentally friendly products and lowering the emissions of its operations. Meanwhile, Chevron (CVX 0.88%) and chemical company Dow Inc. (DOW 0.62%) have mostly missed out on the 2023 stock market rally. Why Boeing Stock Is Down Today - MSN The pandemic added to Boeing's woes, cutting demand for new aircraft. In fact, absent anything else coming out of the woodwork, I would argue that the next five years for the company will likely be healthier than the last five years were. The Motley Fool recommends AerCap Holdings. However, one area that sticks out is the energy transition. I think a solid case could be made, also, that the company might need to trade lower than these average multiples that the stock traded at prior to 2019. Geopolitical concerns have also been blamed for China's hesitation to recertify Boeing's 737 MAX, a plane that was grounded for 18 months due to safety concerns but is now cleared to fly in the U.S. and in most of the world. Between Deuschle's China concerns and broader fears that a slowing global economy could cause airlines to defer orders, there is a lot of uncertainty surrounding Boeing right now. There isn't a lot of new news about Boeing on Monday, but with the market sell-off accelerating, investors appear to be trying to drop names with a lot of risk associated with them. The Motley Fool has positions in and recommends FedEx. Aengus Kelly, CEO of AerCap, predicted that given time Boeing would bounce back. Lee Samaha has no position in any of the stocks mentioned. Adjusted operating cash flow, for instance, which measures operating cash flow without factoring in changes in working capital, came in negative to the tune of $627 million in 2022. Falling energy prices have pushed down Chevron's stock, providing a buying opportunity. Even after the MAX is cleared by Chinese regulators, there is a risk the Chinese government will push its airlines to favor planes made by Boeing archrival Airbus (OTC: EADSY). But this doesn't mean that the company makes for an attractive investment at this time. Right now, the company has four different operating segments. Heading into earnings season, investors are bracing for an update on the state of the global economy. Even though the picture for the company is improving from a fundamental perspective, I would argue that the stock is, at best, likely to be fairly valued once it works out all of its pain points. He expects continued tensions between the U.S. and China to weigh on its sales, and predicts the company will face challenges as it attempts to boost orders and cash flow. Delta Plane Makes Emergency Landing With No Front Landing Gear This includes supply chain and logistics management services, upgrading and converting aircraft, providing spare parts, providing pilot and maintenance training systems and services, engineering, and more. At Walletinvestor.com we predict future values with technical analysis for wide selection of stocks like Boeing Co.. This unit was responsible for 26.4% of the company's revenue last year. To make the world smarter, happier, and richer. If the company hits its target of $10 billion in FCF in 2025/2026, the current market capitalization of $127 billion will look like an excellent entry point in a few years. Even though this is a nice improvement, it still stands far away from what the company consistently generated in the years leading up to the firm's troubles. Boeing (NYSE: BA) stock is taking a beating on Wednesday following the release of the aircraft company's first-quarter 2022 earnings report. Boeing's 737 MAX is back flying in most of the world after a pair of fatal accidents, but the plane has not yet been recertified in the all-important Chinese market. From 2018 to 2019, for instance, revenue plunged from $101.1 billion to $76.6 billion. It was only in 2021 that the business started to see some improvement on the sales front. This unit was responsible for 34.8% of the company's revenue last year. Shares of Boeing (BA -0.24%), one of the companies most closely tied to international trade, fell more than the broader markets, down as much as 5% on Thursday morning. Boeing is on the recovery path, but investors will need patience. Cost basis and return based on previous market day close. Current Price $896.45 Price as of July 3, 2023, 4:00 p.m. Why Boeing Stock Is Down Today | The Motley Fool Living Trust vs. Will: Which Is the Best Way to Pass Inheritance to Your Family? This is a massive sigh of relief because the pain during just 2020 and 2021 combined was astronomical. Why Bloom Energy Stock Blasted More Than 7% Higher Today I see that improving FCF as year progresses. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. It is hard to overstate how important China is to Boeing's long-term future. Boeing, thanks to its duopoly in large aircraft, is well positioned to soak up a lot of that demand. The average rating score is. At the end of the first quarter of this year, for instance, it came in at $411.4 billion. Boeing and Airbus enjoy a duopoly in the commercial aircraft market, but the battle between the two companies is intense. authenticate users, apply security measures, and prevent spam and abuse, and, display personalised ads and content based on interest profiles, measure the effectiveness of personalised ads and content, and, develop and improve our products and services. Investors were sure energized about the potential of hydrogen power specialist Bloom Energy ( BE 7.33%) on Friday. But it is far from great. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. It's unclear when the company will revert back to the kind of health it was prior to 2019. At this point in time, if we assume that management is correct about operating cash flow, the firm is trading at a forward price to operating cash flow multiple of 23.1. The Global Services segment provides services to commercial and defense customers. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. Shareholder percentage totals can add to more than 100% because some holders are included in the free float. That's no guarantee that it will continue to do so for the next 36 years, but it's a strong indication that rewarding shareholders is a part of the company culture. But a refresh of the company's 777 wide-body is years behind schedule, and the 787 Dreamliner has been caught up in probes into various potential manufacturing issues. Today's Change (-3.46%) -$7.62 Current Price $212.37 Price as of June 20, 2023, 4:00 p.m. Airbus Soars Past Boeing at the Paris Air Show, Why It Makes No Sense to Invest in the Airline Industry (and Why Boeing and General Electric Investors Will Do It Anyway), Here's How Big Joe Biden's Social Security Check Is -- To the Dollar, 3 Changes to Social Security You Probably Didn't Know. The Boeing Company (BA) Latest Stock News & Headlines - Yahoo Finance Lou Whiteman has no position in any of the stocks mentioned. SpaceX Just Made Space Cheaper for Everyone | The Motley Fool Making the world smarter, happier, and richer. Why Boeing Stock Dropped Today | The Motley Fool Shares of Boeing Co. dropped 0.24% to $212.10 Friday, on what proved to be an all-around grim trading session for the stock market, with the S&P 500 Index. But those flights were cancelled prior to takeoff, denying Boeing an important milestone in its recovery. Yes, backlog is growing consistently. It had been hoping for robust demand for new planes in the years to come to boost cash flows and help it to pay down some of the debt it took on during the crisis. 2 min read Boeing Stock Falls As Company Cuts Guidance For 787s Deliveries Shares of Boeing found themselves under pressure after FAA stated that new problems were. Because of this, I've decided to rate to the business a hold. To make the world smarter, happier, and richer. The issue is it will take time, perhaps even years, before Boeing is able to stabilize itself. The question for investors is how long that recovery will take. Asia, and China in particular, are a big part of the growth plan for both Airbus and Boeing. After all, the firm is showing some really positive signs of improvement. Falling energy prices have pushed down Chevron's stock, providing a buying opportunity. Boeing has taken its investors on a turbulent ride over the past few years. Shares of Boeing, though well off their lows, are still 40% below where the stock traded three years ago. Three of those four years saw losses in the billions of dollars. Local media reported no signs of survivors.More From. 86% of retail CFD accounts lose money, Top Analyst Reports for BHP Group, AstraZeneca & Boeing, Boeing (BA) Secures Contract to Support CH-47 Helicopter, Boeing (BA) Stock Moves -0.32%: What You Should Know, Capital Research & Management Co. (World Investors), Capital Research & Management Co. 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Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. It's estimated that the industry lost $390 billion during that time. The industrial giant of aerospace remains apparently mired in red ink from the stock market sell-off earlier . Plus500. I have no business relationship with any company whose stock is mentioned in this article. Boeing (NYSE: BA) stock is taking a beating on Wednesday following the release of the aircraft company's first-quarter 2022 earnings report. Airbus Soars Past Boeing at the Paris Air Show, Why It Makes No Sense to Invest in the Airline Industry (and Why Boeing and General Electric Investors Will Do It Anyway), Here's How Big Joe Biden's Social Security Check Is -- To the Dollar, 3 Changes to Social Security You Probably Didn't Know. Dow has been paying down debt and investing in more environmentally friendly products. Boeing stock rose 0.6% to 210.67 early Wednesday after gaining 1.3% in premarket action. The average price to operating cash flow multiple was 11.6, while the average EV to EBITDA multiple came in at 11.7. Some of the issues could be FedEx specific, but it's pretty easy to see why investors are worried that Subramaniam's observations will have a strong effect on a wide range of companies. I wrote this article myself, and it expresses my own opinions. When a company keeps its dividend steady instead of returning more value to shareholders, it can be a sign of weakness. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Kelly is correct in saying Boeing will likely move past its issues eventually, and given that Boeing has a duopoly with Airbus, it is easy to make the case that demand for its products will hold up and investors buying in now will eventually be rewarded. Become a Motley Fool. Fortunately for investors, the picture did start to improve after that. Boeing's core business is providing the airplanes that connect the globe, but it is getting harder to make the case there will be a lot of demand for those airplanes in the quarters to come. Daniel Foelber has no position in any of the stocks mentioned. Living Trust vs. Will: Which Is the Best Way to Pass Inheritance to Your Family? Learn More. Why Boeing Stock Is Falling Today | The Motley Fool A key customer in China is ordering from Boeing archrival Airbus, a sign of Boeing's difficulties in the region. But a quick refresher it's not necessarily a bad idea. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. For this producer of commodity chemicals, there aren't exactly a lot of growth opportunities aside from gradually expanding capacity in lockstep with the economy. Boeing, with a global order book and customers, airline companies, that buy more planes when times are good and travel demand is robust, is an obvious target for these concerns. Despite a . The Motley Fool has positions in and recommends BWX Technologies. Living Trust vs. Will: Which Is the Best Way to Pass Inheritance to Your Family? NEW YORK ( TheStreet) -- Shares of Boeing ( BA) - Get Free Report were falling -1.6% to $124.83 on Tuesday after receiving downgrades from The Buckingham Research Group and RBC Capital.. 3 Blue-Chip Dow Stocks to Buy in July | The Motley Fool Boeing has faced a couple of tough years due to the 737 MAX issues and the pandemic. The company's total long-term debt today is more than 400% where it was in 2018. The Motley Fool has a disclosure policy. Boeing continues to be mired in production issues, with its new 777 delayed and scrutiny over the 787 Dreamliner holding back deliveries. Living Trust vs. Will: Which Is the Best Way to Pass Inheritance to Your Family? balance sheet and inputs from the stock market. *Average returns of all recommendations since inception. The Motley Fool has a disclosure policy. They have since retreated about 5% . One way Chevron is doing this is through acquisitions. One of the most well-known companies on the planet is aviation giant Boeing (NYSE:BA). Shares of Boeing traded down as much as 8% as of early afternoon on Monday, easily surpassing the S&P 500's 2.8% decline. been downright painful for the business and its shareholders. There are some catalysts on the horizon, including a potential big Delta Air Lines order that is rumored, but China is a massive overhang. That followed a glowing analyst note on the company from an investment bank . Source: vaalaa / Shutterstock The bad news for BA. As recently as 2018, China accounted for about one-quarter of jet airplane deliveries. To make the world smarter, happier, and richer. But in Dow's case, the 5.4% dividend yield is already high enough. A major multinational company has sounded the warning about the global economy, and stocks are trading down on Friday as a result. Airbus Soars Past Boeing at the Paris Air Show, Why It Makes No Sense to Invest in the Airline Industry (and Why Boeing and General Electric Investors Will Do It Anyway), Here's How Big Joe Biden's Social Security Check Is -- To the Dollar, 3 Changes to Social Security You Probably Didn't Know. Those incidents sparked investigations that revealed a lot of embarrassing details about the company's culture and led to fresh scrutiny, and a number of groundings, of other Boeing designs. Revenue of $17.9 billion during the first quarter of the year dwarfs the $14 billion generated the same time last year. Airbus Soars Past Boeing at the Paris Air Show, Why It Makes No Sense to Invest in the Airline Industry (and Why Boeing and General Electric Investors Will Do It Anyway), Here's How Big Joe Biden's Social Security Check Is -- To the Dollar, 3 Changes to Social Security You Probably Didn't Know. To make the world smarter, happier, and richer. Invest better with The Motley Fool. Why Boeing Stock Is Down By 3% Today - Yahoo But it has not yet been cleared to resume service in China. The situation has gotten so bad that Dmhnal Slattery, CEO of aircraft leasing company Avolon, said last week that Boeing has "lost its way.". On Friday, Boeing investors woke to another piece of bad news. In that sense, I do see the picture for the company getting better. Hot Stocks / Wait For Boeing Stock To Really Take Off The aircraft maker is recovering, but still has ground to make up By Joel Baglole, InvestorPlace Contributor Mar 4, 2022, 6:00 am EDT Will. Find out more about how we use your personal data in our privacy policy and cookie policy. As part of the settlement, Boeing will pay $200 million in fines, and Muilenburg will pay $1 million. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. . Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. A Delta Air Lines flight made an emergency landing in North Carolina on Wednesday after its front landing gear failed to deploy. Among commercial aerospace-focused companies, Credit Suisse rates TransDigm Group and Heicoas outperforms and is neutral on Raytheon Technologies. Boeing (BA -0.24%) is a mess, and on a day in the markets when fear is triumphing over greed, investors seem to have little desire to hold on and ride out a restructuring campaign. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The integrated ethylene cracker and derivatives plant is expected to start up in 2027. Airbus Soars Past Boeing at the Paris Air Show, Why It Makes No Sense to Invest in the Airline Industry (and Why Boeing and General Electric Investors Will Do It Anyway), Here's How Big Joe Biden's Social Security Check Is -- To the Dollar, 3 Changes to Social Security You Probably Didn't Know. Until there is business as usual in China, it's hard to get too excited about Boeing's near-term outlook. Over the past decade, the S&P 500 is up 347.5% compared to the 141.8% seen by this aviation behemoth. If there is a prolonged slowdown, the company's campaign to fix its balance sheet and get airborne again will surely take longer than investors had hoped. Even as that picture began to show signs of improvement, COVID-19 took a hammer to the company. Boeing's (BA -0.24%) top competitor has secured a massive new commercial order from China worth an estimated $37 billion, a deal that highlights the U.S. aerospace manufacturer's difficulties selling into that important market. Updated daily, it takes into ET Canada rejects Boeing's F-18 fighter jet, and might buy Lockheed's F-35 instead. Even though the company operates in a space that should always see growing demand in the long run, the past few years have been downright painful for the business and its shareholders. Ultimately, these improvements should help the company generate even more value for its shareholders. Operationally speaking, the picture for Boeing is absolutely improving. Why Boeing Stock Is Down Today By Lou Whiteman - Oct 31, 2022 at 11:10AM Key Points Boeing's 737 MAX is back flying in most of the world after a pair of fatal accidents, but the plane has not. The issue is there is no real catalyst on the horizon to provide a boost. Dow expects the project to be profitable by contributing $1 billion of EBITDA growth across its value chain by 2030. In 2021, revenue grew to $62.3 billion before hitting $66.6 billion in 2022. Morgan Stanley analyst Kristine Liwag is behind today's news. But Boeing also took on a lot of debt, as well as hits to its reputation, during the 737 MAX debacle. Lee Samaha (Boeing): Boeing needs time to win over the doubters. Rather, it just warrants a lower trading multiple than if the company did not have this amount of debt on its books. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. But those familiar with the energy market know that these ups and downs in oil prices are par for the course, not something to be feared. This would be the first time that it has been positive since 2018 and only the second time, if we ignore changes in working capital, that it has been positive since 2019. The score provides a forward-looking, one-year measure of credit In fact, they provide a great opportunity to pick up shares of Chevron and its 4% forward-yielding dividend. Production issues associated with its 787 aircraft also hurt the company. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Over the same window of time, shares of Boeing have dropped 34.2%, with reinvested distributions included into the mix. Cost basis and return based on previous market day close. This has led many investors to shy away from energy stocks such as Chevron. Elsewhere, tensions are high in Europe after the alleged sabotage of a key gas pipeline. The only way for Boeing to normalize its balance sheet is cash flow, which means an uptick in deliveries. Boeing stock is up roughly 11% over the same period, while Raytheon stock is down about 3%. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. In fact, absent anything else coming out of the woodwork, I would argue that the next five years for the company will likely be healthier than the last five years were. There are signs a return could be near. AerCap is the world's largest leasing firms and one of Boeing's most important customers, so Kelly's comments are significant. ET You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Cost basis and return based on previous market day close. Here's what Boeing blames for its big loss | CNN Business The Motley Fool has no position in any of the stocks mentioned. Making the world smarter, happier, and richer. Moreover, Boeing's medium-term plan to hit $10 billion in. Boeing's shares have underperformed over the past five years, dropping 34.2% compared to the S&P 500's appreciation of 61.4%. The Motley Fool has a disclosure policy. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. By March of this year, air traffic had recovered to 88% of what it was the same month of 2019. Investors are disappointed, sending shares down nearly 5% in Friday trading. Airlines are less likely to commit to massive new plane orders in such an uncertain environment, where there is no clear indication demand will grow from here. Plus, there's been a good argument that funds were better spent paying down debt and bolstering the company's balance sheet -- which is exactly what Dow has done over the last few years in addition to buying back some shares. Take that free cash flow, reduce the debt by 50-60%, and then return to paying a small dividend until debt is where you want it. Making the world smarter, happier, and richer. The third segment is the Global Services segment. If you look at the operating history of Boeing, the past few years have been downright ugly. In May, Chevron announced its plan to acquire PDC Energy, a domestic exploration and production company. ET. Boeing (BA -0.24%) is one of the best-known industrial companies on the market. Scott Levine (Chevron): After falling almost 40% since this time last year, the price of West Texas Intermediate crude, a benchmark for oil prices, is currently less than $70 per barrel. Learn More. Even though the picture for the company is improving from a fundamental perspective, I would argue that the stock is, at best, likely to be fairly valued once it works out all of its pain points. The shipping giant pre-announced earnings for the quarter ending Aug. 31 that were well below expectations and withdrew its financial guidance for the full year. To report a factual error in this article. It even provides satellite systems for both governments and commercial enterprises, and it engages in cyber and information services. Boeing 's ( BA -3.46%) top competitor has secured a massive new commercial order from China worth an estimated $37 billion, a deal that highlights the U.S. aerospace manufacturer's difficulties . After seeing backlog fall from $490.5 billion at the end of 2018 to $363.4 billion in 2020, it finally began to show signs of growth.