Boeing Fell Back Below $200 Ahead of a Strike Deadline. Here's Why I'd Buy the Fear After New Contracts Were Signed
Boeing stock is losing altitude, but the pullback may be a buying opportunity for intrepid investors.
Boeing's stock price fell below $200 as a strike deadline approached, but a recent signing of new contracts could present a buying opportunity, argues this reporter. The aerospace and defense giant averted a walkout with 17,000 engineers and technical staff members, who hailed some victories they once deemed unattainable. Despite a 11.3% decline in Boeing shares over the past month, the company's outlook shows promise.
The defense side of Boeing's business appears particularly promising, as the U.S. Navy recently selected Boeing over competitor Northrop Grumman for the sixth-generation carrier-based fighter jets, which may be delivered in the 2030s. Additionally, the Air Force has chosen Boeing to develop the F-47, a replacement for the F-15, which has been undefeated in air-to-air combat.
Analyst Anthony Valentini of Barclays has even suggested that Boeing could benefit from the modern-day industrial revolution spurred by aerospace and defense companies. While past issues, such as supply chain problems and an autopilot software glitch, have weighed on the stock, this decline presents an opportunity for investors.
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