Could Buying Boeing Stock Today Set You Up for Life?

The idea behind buying Boeing (NYSE: BA) stock is simple. Despite its troubles in recent years, the aviation giant remains in an effective duopoly in the commercial aerospace jet market with Airbus. It also has a $500 million backlog, representing more than seven years of its expected sales in 2024. The ingredients for a recovery are in place, and so is a new chief executive officer, Kelly Ortberg, appointed in the summer to lead a turnaround at the company. Is it enough to make Boeing a compelling stock for long-term investors?The stock certainly has upside potential, and as previously discussed, it doesn't rely only on ramping up 737 MAX production and working through problematic fixed-price development programs in its defense business. Those are critical elements of a recovery and are within Boeing's reach, too.However, the new CEO could restore a lot of faith among investors in other ways, such as by resetting investor expectations to more realistic targets than $10 billion in free cash flow for 2025/2026, a goal set by Ortberg's predecessor, Dave Calhoun. Similarly, Ortberg is on record saying Boeing's defense business needs to improve its estimate-at-completion (EAC) processes -- if a company can't get its internal EAC right, it's highly likely to disappoint investors with its external forecasts. In addition, Ortberg is taking the opportunity to review the portfolio, and the possibility of restructuring the company could generate value for investors.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool