Why the Profit on Boeing Co Stock?
China Southern Airlines said on Thursday that it is turning to Boeing
Co.'s (NYSE: BA) European rival Airbus SE for its next big jet order,
in a major win for Airbus.
The order for 40 A320neo family aircraft, worth about $4.85 billion,
will be delivered to China Southern Airlines subsidiary Xiamen Airlines between
2024 and 2027. Xiamen has previously relied solely on Boeing jets, but the
switch reinforces Boeing's negative outlook for selling more planes in China
over the next few years.
China Southern Airlines and Airbus announced the deal the same day the
Securities and Exchange Commission said it had reached a settlement with Boeing
and former CEO Dennis Muilenberg over allegations the company misled investors
about the safety of the 737 Max. Boeing was hit with $200 million in fines,
while Muilenberg will have to pay $1 million.
The SEC accused Boeing and Muilenberg of knowing about risks with the
flight control software after the first crash, in Indonesia, but failing to
disclose them before the second crash, in Ethiopia. Boeing and Muilenberg have
The stock has declined 31% so far this year.
The Profits Explained.....
Entered the Boeing Co stock trade on Monday, September 26, 2022 at 10:24am for $3.65.
Exited the trade on the same day at 2:28pm for $5.20,
a potential profit of 42%.
Important to Note: As this was a very quick trade many
members may not have been able to exit in time – but if the market continues
its downward spiral in the week ahead then further profits are expected.
Don’t miss out on further trades – become a member today!
About Boeing Co.....
Company is the world’s largest manufacturer of airplanes and commands more than
50% of the market in some channels and categories. The company and its family
of subsidiaries design, develops, manufacture, sell, service, and supports
commercial jetliners, military aircraft, satellites, missile defense, human
space flight, and related services worldwide. The company operates through four
segments including Commercial Airplanes; Defense, Space & Security; Global
Services; and Boeing Capital providing products and services to end-users in
its start in 1910 when William E. Boeing developed a love for aircraft. Soon
after he takes his first plane ride which leads him to build a hangar and begin
construction of his first plane. The onset of WWI helped spur the company’s
growth but business was cut drastically in its wake. The start of WWII was
another milestone for the company and one that led to its current position of
dominance. The company was incorporated in 1916 and is based in Chicago,
Illinois. Boeing employs over 140,000 people in 65 countries making it one of
the most diverse employers on the planet.
Commercial Airplanes segment is built around the iconic 7-series which includes
the 737, 747, and 787. The segment provides commercial jet aircraft for
passenger and cargo requirements, as well as fleet support services for
regional, national, and international air carriers and logistics and freight
companies. In terms of global volume, the company estimates about 90% of all
air freight is carried aboard one of its jets. This segment also includes the
Dreamliner family of planes. The Dreamliner is a game-changing airplane for
many carriers as it opens up the potential for new one-stop destinations
because of its capacity and range.
Space & Security segment develops and manufactures a range of systems
including manned and unmanned aircraft, missiles, missile defense systems,
satellites, communications equipment, and intelligence systems for governments.
Among the many iconic brands within this segment are the AH-64 Apache, Air
Force One, B-52, C-17 Globemaster, Chinook, F/A-18, and the V-22 Osprey VTOL
aircraft used by the Marines.
Services segment offers a range of products and services that include supply
chain and logistics management, engineering, maintenance, upgrades,
conversions, spare parts, pilot and maintenance training, technical and
maintenance documents, and data analytics to its commercial and defense
also a leader in innovation, leveraging its many decades and avenues of
experience to further aerospace and defense technology. Among the many
innovations is the MQ-25 Stingray which will be the world’s first autonomous
aircraft. The Stingray is only one of many areas of research that also include
drones and undersea vehicles.
More Reasons Why The Initial Weekly Options Put Trade
on ba Stock.....
Boeing Co has settled a Securities and Exchange Commission probe into
its handling of the 737 MAX crisis.
company's 737 MAX, which was once billed as having the potential to be the
top-selling aircraft of all time, was involved in fatal crashes in 2018 and
2019 that led to the plane being grounded for 18 months and prompted a
comprehensive review of Boeing's engineering and safety practices. The company
is still feeling the impact of that review, with the 787 Dreamliner only
recently cleared by safety regulators.
The pandemic added to Boeing's woes, cutting demand for new aircraft.
But with the 737 MAX flying again and airlines beginning to rebound
post-pandemic, Boeing is trying to get airborne again.
Thursday, the Securities and Exchange Commission announced a settlement with
Boeing and former CEO Dennis Muilenburg relating to charges that the company
and its management misled investors about the 737 MAX. As part of the
settlement, Boeing will pay $200 million in fines, and Muilenburg will pay $1
made broad and deep changes across our company in response to those
accidents—fundamental changes that have strengthened our safety processes and
oversight of safety issues, and have enhanced our culture of safety, quality,
and transparency,” Boeing said in a statement, referring to the two 737 Max
crashes. Muilenburg didn’t immediately respond to a request for comment.
Boeing (BA -5.37%) made a big move to put part of its troubled past
behind it, but the aerospace manufacturer also apparently has fallen out of
favor with what had been a key customer in China. Investors are disappointed,
sending shares down nearly 5% in Friday trading. This downward movement is
likely to continue for the short-term.
On Friday, Boeing investors woke to another piece of bad news. Archrival
Airbus (EADSY -2.07%) announced that China's Xiamen Airlines, which until now
has been an all-Boeing operator, has placed an order for 40 Airbus A320neo
aircraft. Xiamen's major shareholder, China Southern Airlines, is perhaps
Boeing's most important customer in the region, and the Airbus deal
demonstrates the challenge Boeing is facing selling planes in China.
The Xiamen order is a warning that Boeing seems to be losing pace, and
market share, in the all-important narrow-body jet market.
Boeing shared plans to cut 150 finance jobs in the U.S. in 2022 to
streamline its corporate structure and focus more resources on manufacturing
and product development.
Boeing would reduce staffing in its information technology and finance
departments, Reuters reported citing an email from the company.
Boeing ramped up its workforce by 10,000 employees earlier this year and
its engineering and manufacturing departments to respond to the market demand.
A week of heavy selling has rocked U.S. stocks and bonds, and many
investors are bracing for more pain ahead.
Wall Street banks are adjusting their forecasts to account for a Federal
Reserve that shows no evidence of letting up, signaling more tightening ahead
to fight inflation after another market-bruising rate hike this week.
With the Fed intent on raising rates higher than expected, "the
market right now is going through a crisis of confidence," said Sam Stovall,
chief investment strategist at CFRA Research.
If the S&P 500 closes below the mid-June low in the days ahead, that
may prompt another wave of aggressive selling, Stovall said. This could send
the index as low as 3,200, a level in line with the average historical decline
in bear markets that coincide with recessions.
While recent data has shown a U.S. economy that is comparatively strong,
investors worry the Fed's tightening will bring on a downturn.
A rout in bond markets added pressure on stocks. Yields on the benchmark
10-year Treasury, which move inversely to prices, recently stood at around
3.69%, their highest level since 2010.
Higher yields on government bonds can dull the allure of equities. Tech
stocks are particularly sensitive to rising yields because their value rests
heavily on future earnings, which are discounted more deeply when bond yields
Investors were reacting to the Federal Reserve’s commitment to its rate
hiking plan to help tame inflation. At the conclusion of the FOMC meeting,
chair Jerome Powell said the central bank could raise rates as high as 4.6%
before pulling back. The forecast also shows the Fed plans to stay aggressive
this year, hiking rates to 4.4% before 2022 ends.
“A lot of traders expected hints of a Fed pivot at Jackson Hole or at
the September FOMC policy, but that never happened,” said Edward Moya, senior
market analyst at Oanda. “A hard landing is becoming the base case scenario for
many and that means more economic pain along with a much weaker stock market is
“How far we go below the summer lows is anyone’s guess,” said Oanda’s
Moya. “It doesn’t seem like any economic data release or Fed speak will
convince markets that a downshift from this aggressive tightening campaign will
be happening anytime soon.”
Hartnett, chief investment strategist at BofA Global Research, believes high
inflation will likely push U.S. Treasury yields as high as 5% over the next
five months, exacerbating the selloff in both stocks and bonds.
new highs in yields equals new lows in stocks," he said, estimating that
the S&P 500 will fall as low as 3,020, at which point investors should
"gorge' on equities.
Sachs, meanwhile, cut its year-end target for the S&P 500 by 16% to 3,600
points from 4,300 points.
on our client discussions, a majority of equity investors have adopted the view
that a hard landing scenario is inevitable," wrote Goldman analyst David
Gordon, senior investment research manager at Charles Schwab, believes there is
more downside ahead because central banks are tightening monetary policy into a
global economy that already appears to be weakening.
will take us longer to get out of this rut not only because of slowdown around
the world but because the Fed and other central banks are hiking into the
slowdown," Gordon said. "It's a toxic mix for risk assets."
becoming indiscriminate,” wrote Keith Lerner, co-chief investment officer at
Truist Advisory Services. "The increased probability of breaking the June
S&P 500 price low may be what it takes to invoke even deeper fear. Fear
often leads to short-term bottoms."
A key signal
to watch over the coming weeks will be how steeply estimates of corporate
earnings fall, said Jake Jolly, senior investment strategist at BNY Mellon. The
S&P 500 is currently trading at around 17 times expected earnings, well
above its historical average, which suggests that a recession is not yet been
priced into the market, he said.
only way we see earnings not contracting is if the economy is able to avoid a
recession and right now that does not seem to the odds-on favorite," he
said. "It's very difficult to be optimistic on equities until the Fed
engineers a soft landing."
to the issued ratings of 17 analysts in the last year, the consensus rating for
Boeing stock is Moderate Buy based on the current 2 hold ratings and 15 buy
ratings for BA. The average twelve-month price prediction for Boeing is $218.07
with a high price target of $281.00 and a low price target of $175.00.
the final week of trading for September, the Dow and S&P 500 are each down
about 6% for the month, while the Nasdaq has lost 8%.
Both the Dow
and S&P are now sitting 1.2% and 1.6%, respectively, above their lows from
mid-June. The Nasdaq is 2.9% above its low.
Boeing stock traded down $7.45 during midday trading on Friday, reaching
$131.26. The stock had a trading volume of 8,927,864 shares, compared to its
average volume of 6,066,341. The firm’s fifty day simple moving average is
$158.34 and its two-hundred day simple moving average is $155.78. The Boeing
Company has a twelve month low of $113.02 and a twelve month high of $233.94.
The firm has a market cap of $77.94 billion, a price-to-earnings ratio of
-14.67 and a beta of 1.35.
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