{"id":282814,"date":"2021-06-24T17:48:00","date_gmt":"2021-06-24T14:48:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/stockwatch-heres-why-boeings-stock-will-soar\/"},"modified":"2021-06-24T17:48:00","modified_gmt":"2021-06-24T14:48:00","slug":"stockwatch-heres-why-boeings-stock-will-soar","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/","title":{"rendered":"#StockWatch: Here\u2019s why Boeing\u2019s stock will soar"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a32564d6edb9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a32564d6edb9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#The_aircraft_makers_two_big_problems_are_temporary_and_it_will_soon_see_a_boost_to_sales_and_cash_flow_from_its_massive_backlog_of_orders\" >The aircraft maker\u2019s two big problems are temporary and it will soon see a boost to sales and cash flow from its massive backlog of orders.<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#A_break_in_the_turbulence\" >A break in the turbulence<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#1_COVID-19\" >1. COVID-19<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#MAX_problems\" >MAX problems<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#Cash_debt_and_cash_flow\" >Cash, debt and cash flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#Backlogs\" >Backlogs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#Moat\" >Moat<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#Wall_Streets_Opinion\" >Wall Street\u2019s Opinion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#Risks\" >Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#Important_dates\" >Important dates<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/buradabiliyorum.com\/en\/stockwatch-heres-why-boeings-stock-will-soar\/#Michael_Brush\" >Michael Brush<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#StockWatch: Here\u2019s why Boeing\u2019s stock will soar<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_aircraft_makers_two_big_problems_are_temporary_and_it_will_soon_see_a_boost_to_sales_and_cash_flow_from_its_massive_backlog_of_orders\"><\/span>\n  The aircraft maker\u2019s two big problems are temporary and it will soon see a boost to sales and cash flow from its massive backlog of orders.<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000315663\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000315663\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Founded by lumber tycoon William Boeing in Seattle in 1916, Boeing has grown to become one of two major plane manufacturers in the world, and a major U.S. defense contractor.<\/p>\n<p> It has hit plenty of turbulence along the way. But few jolts were as rough as the double whammy that laid the aerospace giant low in the past two years. Boeing Co.\u2019s<br \/>\n        BA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208579720\/composite\" class=\"positive\">+1.88%<\/bg-quote><br \/>\n       sales simply got crushed by the 2020 Covid-19 pandemic and the 2019 grounding of one of its most promising lines of planes, the 737 MAX, following tragic crashes. <\/p>\n<div class=\"paywall\">\n       Here you can see what h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened to sales in its main business segment.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:35.703125%;\" data-mobile-ratio=\"35.703125%\" data-layout-ratio=\"35.703125%\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-358968?width=140&amp;size=2.800875273522976 140w,\nhttps:\/\/images.mktw.net\/im-358968?width=540&amp;size=2.800875273522976 540w,\nhttps:\/\/images.mktw.net\/im-358968?width=620&amp;size=2.800875273522976 620w,\nhttps:\/\/images.mktw.net\/im-358968?width=700&amp;size=2.800875273522976 700w,\nhttps:\/\/images.mktw.net\/im-358968?width=860&amp;size=2.800875273522976 860w,\nhttps:\/\/images.mktw.net\/im-358968?width=1260&amp;size=2.800875273522976 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-358968?width=620&amp;size=2.800875273522976\" data-enlarge=\"https:\/\/images.mktw.net\/im-358968?width=1260&amp;size=2.800875273522976\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Company filings<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       The sharp 72% decline in sales of commercial planes last year, compared with 2018, was offset to some degree by fairly stable sales in the defense and space segment. This division sells military aircraft, weapons systems, satellites and spy tools. Services\u2014which provides aftermarket maintenance and spare parts for aircraft\u2014also offered some stability. Boeing also alarmed investors by taking down billions in debt to make it through. (More on this problem in a second.)<\/p>\n<p>The negative sales trends continued in the first quarter.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:41.484375%;\" data-mobile-ratio=\"41.484375%\" data-layout-ratio=\"41.484375%\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-358978?width=140&amp;size=2.4105461393596985 140w,\nhttps:\/\/images.mktw.net\/im-358978?width=540&amp;size=2.4105461393596985 540w,\nhttps:\/\/images.mktw.net\/im-358978?width=620&amp;size=2.4105461393596985 620w,\nhttps:\/\/images.mktw.net\/im-358978?width=700&amp;size=2.4105461393596985 700w,\nhttps:\/\/images.mktw.net\/im-358978?width=860&amp;size=2.4105461393596985 860w,\nhttps:\/\/images.mktw.net\/im-358978?width=1260&amp;size=2.4105461393596985 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-358978?width=620&amp;size=2.4105461393596985\" data-enlarge=\"https:\/\/images.mktw.net\/im-358978?width=1260&amp;size=2.4105461393596985\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Company filings<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       All of this looks bad.<\/p>\n<p>But here\u2019s the key for investors: Sales (and the stock) fell sharply in the past two years because of <em>reversible problems<\/em>. At these levels, the stock looks cheap relative to its potential and its history, says Tony Bancroft, an analyst at the value shop Gabelli Funds.<\/p>\n<p>I concur\u2014which is why I suggested Boeing in my stock letter Brush Up on Stocks (link in bio below) at $180 in August 2020 and reiterated it in late September at $165. I also continue to own it. Boeing\u2019s stock still trades 47% below its pre-pandemic high of around $449. Here\u2019s why it\u2019s going back up there.<\/p>\n<p>Here you can see that Boeing has the most room to improve compared with competitors. The sky-high price-to-earnings ratio is a reflection of how suppressed earnings are, but this will only be temporary.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:28.984375%;\" data-mobile-ratio=\"28.984375%\" data-layout-ratio=\"28.984375%\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-359324?width=140&amp;size=3.450134770889488 140w,\nhttps:\/\/images.mktw.net\/im-359324?width=540&amp;size=3.450134770889488 540w,\nhttps:\/\/images.mktw.net\/im-359324?width=620&amp;size=3.450134770889488 620w,\nhttps:\/\/images.mktw.net\/im-359324?width=700&amp;size=3.450134770889488 700w,\nhttps:\/\/images.mktw.net\/im-359324?width=860&amp;size=3.450134770889488 860w,\nhttps:\/\/images.mktw.net\/im-359324?width=1260&amp;size=3.450134770889488 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-359324?width=620&amp;size=3.450134770889488\" data-enlarge=\"https:\/\/images.mktw.net\/im-359324?width=1260&amp;size=3.450134770889488\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            FactSet<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<h6><span class=\"ez-toc-section\" id=\"A_break_in_the_turbulence\"><\/span>A break in the turbulence<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p> During the past seven months, the outlook for Boeing has improved remarkably \u2014 reflected in the 62% move in the stock price from $150 to $244. The S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.64%<\/bg-quote><br \/>\n       and Dow Jones Industrial Average<br \/>\n        DJIA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210598065\/realtime\" class=\"positive\">+0.78%<\/bg-quote><br \/>\n       are up only around 27% over the same period. Here are the two main developments behind the move, and why these issues will continue to unwind and push the stock higher.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<h4><span class=\"ez-toc-section\" id=\"1_COVID-19\"><\/span>1. COVID-19<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The pandemic took a big toll on Boeing\u2019s main customers, the airlines. But did you know this? Last year, the downturn wiped out all airline earnings generated by the group since WWII, according to Jefferies analyst Sheila Kahyaoglu. That\u2019s bad <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> for Boeing.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:70%;\" data-mobile-ratio=\"70%\" data-layout-ratio=\"70%\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-359267?width=140&amp;size=1.4285714285714286 140w,\nhttps:\/\/images.mktw.net\/im-359267?width=540&amp;size=1.4285714285714286 540w,\nhttps:\/\/images.mktw.net\/im-359267?width=620&amp;size=1.4285714285714286 620w,\nhttps:\/\/images.mktw.net\/im-359267?width=700&amp;size=1.4285714285714286 700w,\nhttps:\/\/images.mktw.net\/im-359267?width=860&amp;size=1.4285714285714286 860w,\nhttps:\/\/images.mktw.net\/im-359267?width=1260&amp;size=1.4285714285714286 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-359267?width=620&amp;size=1.4285714285714286\" data-enlarge=\"https:\/\/images.mktw.net\/im-359267?width=1260&amp;size=1.4285714285714286\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><\/figcaption><\/figure>\n<\/div>\n<p>       But domestic leisure <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> has come back with a vengeance, as the U.S., China, Russia and parts of Europe have recovered. There\u2019s more to go, as more people get confident about being in planes. Business travel is picking up, too. By 2023, global passenger traffic will surpass pre-Covid-19 levels, predicts the International Air Transport Association (IATA) driven by economic strength, more coronavirus vaccinations, and pent-up demand.<\/p>\n<p><strong>Related:<\/strong> Americans are still hesitant about getting on a plane<\/p>\n<p>The air-travel revival will have an im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te effect on sales of narrow-body planes used for shorter hops, such as Boeing\u2019s 737 MAX. Sales of wide-bodies\u2014for long haul trips\u2014are unlikely to recover until a COVID-19 vaccine is more widely distributed globally, says Morningstar analyst Burkett Huey. The lift for sales of Boeing\u2019s 787 Dreamliner for the long-haul market may take longer, though sales are already picking up. Baird analyst Peter Arment predicts international travel won\u2019t really snap back until 2023.<\/p>\n<p>Breaking news: Orders for new aircraft, other durable goods bounce higher in May<\/p>\n<h4><span class=\"ez-toc-section\" id=\"MAX_problems\"><\/span>MAX problems<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Tragically, two fatal accidents grounded the 737 MAX in March 2019. Deliveries of the plane resumed in the fourth quarter after the Federal Aviation Administration (FAA) agreed to let it fly again. By now, more than 165 countries have approved the resumption of 737 MAX flights.<\/p>\n<p>This means sales are snapping back. Last week Ryanair Holdings PLC<br \/>\n        RYAAY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204098489\/composite\" class=\"positive\">+0.79%<\/bg-quote><br \/>\n       received its first MAX out of the 210\u00a0it plans to buy. Boeing is also filling orders from Southwest Airlines Co.<br \/>\n        LUV,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201071949\/composite\" class=\"negative\">-0.41%<\/bg-quote><span>,<\/span><br \/>\n       United Airlines Holdings Inc.<br \/>\n        UAL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205037281\/composite\" class=\"negative\">-1.22%<\/bg-quote><span>,<\/span><br \/>\n       Alaska Air Group Inc.<br \/>\n        ALK,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200972303\/composite\" class=\"negative\">-0.56%<\/bg-quote><span>,<\/span><br \/>\n       and Dubai Aerospace Enterprise, among others. As of the end of May, the company delivered almost 100 737 MAX planes. The company says about half of the 400 or so 737 MAX in inventory will be delivered by the end of 2021, and most of the rest by the end of 2022.<\/p>\n<p>The final big hurdle for Boeing is recertification of the MAX in China, which is back at pre-pandemic air travel levels. \u201cThere is a very large backlog for MAX orders from Chinese airlines,\u201d says Jefferies analyst Kahyaoglu. \u201cMore MAX were delivered to China before the grounding than any other country.\u201d<\/p>\n<p>China approval of the MAX will likely happen in the second half of the year. It is not yet priced-in, because of ongoing uncertainties about the U.S.-China relationship. China knows it holds a strong card to play here. So, there\u2019s a chance approval could drag out. \u201cThis is important for the whole U.S. aerospace industry, so it is a powerful card for China,\u201d says J.P. Morgan analyst Seth Seifman.<\/p>\n<p>\u201cI\u2019m confident it will happen,\u201d says Boeing CEO Dave Calhoun.<\/p>\n<div data-layout=\"header\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaVideo\n            header\n  article__inset\n          article__inset--type-InsetMediaVideo\n            article__inset--header\n  \"><\/p>\n<figure class=\"media-object-video article__inset__video media-object-video--standard\">\n<div class=\"wsj-media-summary clearfix\">\n<div class=\"strap-container\">\n<h4 class=\"strap\" itemprop=\"description\">\n<\/h4><\/div>\n<\/p><\/div>\n<div class=\"video-container article__inset__video__player\" id=\"http:\/\/www.marketwatch.com\/news\/2B19EFE7-3ED2-4D5D-9990-25D6D4E6DB2B\" data-src=\"http:\/\/www.marketwatch.com\/news\/2B19EFE7-3ED2-4D5D-9990-25D6D4E6DB2B\" data-format=\"standard\" data-esplash=\"\" data-msplash=\"\" data-suppressheadline=\"\" data-verticalstill=\"\">\n  <\/div><figcaption class=\"wsj-article-caption article__inset__video__caption\">\n          As passengers return to air travel in big numbers, the Federal Aviation Administration has reported an uptick in unruly and dangerous behaviors by travelers. WSJ\u2019s Alison Sider explains. Photo: David Zalubowski\/AP<br \/>\n        <\/figcaption><\/figure>\n<\/div>\n<p>       Going forward, Boeing will benefit from the same two megatrends that helped it before the pandemic. The first is the growth of low-cost carriers. Greater competition following airline sector deregulation boosts aircraft demand. Next, Boeing gets a lift from the emerging middle class in the developing world. When people earn discretionary income, one of the first things they love to do is travel.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Cash_debt_and_cash_flow\"><\/span>Cash, debt and cash flow<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Boeing took on $25 billion in debt last year to make it through its twin crises, following a 2019 borrowing spree. It had $63.5 billion in debt at end of 2020, compared with $27.3 billion at end of 2019. These debt levels\u2014and debt-rating downgrades\u2014have investors worried. So, a continued pickup in sales is crucial. Fortunately, that will likely play out\u2014and boost cash flow.<\/p>\n<p>\u201cWe expect the first quarter was the most challenging quarter from a cash perspective, and we expect the trend to improve for the remainder of the year as we ramp up 787 and 737 deliveries,\u201d Boeing CFO Greg Smith said in the first quarter conference call in late April.<\/p>\n<p>Baird analyst Arment expects negative free cash flow of $8.4 billion this year, and a return to positive cash flow of $4.5 billion in 2022, and $11.8 billion in 2023. He expects over $20 billion in debt paydowns during 2022-2024. The 737 accounted for 40% of Boeing\u2019s free cash flow pre-pandemic, so sales trends for this plane are key.<\/p>\n<p>Here is a summary of Boeing debt levels and cash flow, again showing how much room there is for improvement\u2014which will play out as sales trends continue to improve.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:32.1875%;\" data-mobile-ratio=\"32.1875%\" data-layout-ratio=\"32.1875%\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-358983?width=140&amp;size=3.1067961165048543 140w,\nhttps:\/\/images.mktw.net\/im-358983?width=540&amp;size=3.1067961165048543 540w,\nhttps:\/\/images.mktw.net\/im-358983?width=620&amp;size=3.1067961165048543 620w,\nhttps:\/\/images.mktw.net\/im-358983?width=700&amp;size=3.1067961165048543 700w,\nhttps:\/\/images.mktw.net\/im-358983?width=860&amp;size=3.1067961165048543 860w,\nhttps:\/\/images.mktw.net\/im-358983?width=1260&amp;size=3.1067961165048543 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-358983?width=620&amp;size=3.1067961165048543\" data-enlarge=\"https:\/\/images.mktw.net\/im-358983?width=1260&amp;size=3.1067961165048543\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            FactSet<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<h6><span class=\"ez-toc-section\" id=\"Backlogs\"><\/span>Backlogs<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p> One factor that reduces uncertainty for Boeing investors is the large backlog of orders.<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:53.75%;\" data-mobile-ratio=\"53.75%\" data-layout-ratio=\"53.75%\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-358987?width=140&amp;size=1.8604651162790697 140w,\nhttps:\/\/images.mktw.net\/im-358987?width=540&amp;size=1.8604651162790697 540w,\nhttps:\/\/images.mktw.net\/im-358987?width=620&amp;size=1.8604651162790697 620w,\nhttps:\/\/images.mktw.net\/im-358987?width=700&amp;size=1.8604651162790697 700w,\nhttps:\/\/images.mktw.net\/im-358987?width=860&amp;size=1.8604651162790697 860w,\nhttps:\/\/images.mktw.net\/im-358987?width=1260&amp;size=1.8604651162790697 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-358987?width=620&amp;size=1.8604651162790697\" data-enlarge=\"https:\/\/images.mktw.net\/im-358987?width=1260&amp;size=1.8604651162790697\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Company filings<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       \u201cBoeing has been through two huge crises, and it still has firm back-orders,\u201d says Bancroft at Gabelli Funds. \u201cCustomers haven\u2019t left because they know the sector will recover even if it might take a while for business and long-distance travel.\u201d Customers are also reluctant to renege on orders because of large down payments. And since there are only two major suppliers\u2014Boeing and Airbus SE<br \/>\n        EADSY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200706109\/delayed\" class=\"positive\">+0.71%<\/bg-quote><br \/>\n      \u2014airlines aren\u2019t keen on ruining relations with one. Boeing\u2019s backlog will soon begin to grow as orders pick up and cancellations decline, predicts Goldman Sachs analyst Noah Poponak, who has a buy rating and $307 price target on the stock.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Moat\"><\/span>Moat<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Investors such as Warren Buffett look for moats around businesses because they protect sales and pricing power. Boeing has a large moat for several reasons, says Morningstar\u2019s Huey. First, it is tough to break into aircraft manufacturing because it is so expensive, and lead times from design to production are so long. Next, aircraft companies are heavily regulated, and it\u2019s hard to learn how to navigate these waters. Boeing has 1,500 people working on regulatory matters, says Huey. Customers get locked-in because of the need for aftermarket parts and services.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Wall_Streets_Opinion\"><\/span>Wall Street\u2019s Opinion<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:43.4375%;\" data-mobile-ratio=\"43.4375%\" data-layout-ratio=\"43.4375%\" data-subtype=\"photo\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-359326?width=140&amp;size=2.302158273381295 140w,\nhttps:\/\/images.mktw.net\/im-359326?width=540&amp;size=2.302158273381295 540w,\nhttps:\/\/images.mktw.net\/im-359326?width=620&amp;size=2.302158273381295 620w,\nhttps:\/\/images.mktw.net\/im-359326?width=700&amp;size=2.302158273381295 700w,\nhttps:\/\/images.mktw.net\/im-359326?width=860&amp;size=2.302158273381295 860w,\nhttps:\/\/images.mktw.net\/im-359326?width=1260&amp;size=2.302158273381295 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-359326?width=620&amp;size=2.302158273381295\" data-enlarge=\"https:\/\/images.mktw.net\/im-359326?width=1260&amp;size=2.302158273381295\" alt=\"\" title=\"\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            FactSet<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<h6><span class=\"ez-toc-section\" id=\"Risks\"><\/span>Risks<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>A big risk is that U.S.-China trade relations worsen. This would delay recertification of the 737 MAX in China. Next, given China\u2019s \u201cMade in China 2025\u201d strategy, the country may decide to rely on narrow-body jets made by its own aircraft manufacturer, Comac. Coronavirus variants could develop and cause another lockdown. An economic downturn could happen for other reasons. A strengthening of the dollar<br \/>\n        BUXX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210673925\/realtime\" class=\"positive\">+0.01%<\/bg-quote><br \/>\n       could hurt sales since about half of Boeing\u2019s backlog comes from abroad.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Important_dates\"><\/span>Important dates<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<ul class=\"articleList\">\n<li>\n      July 27\u2014Second-quarter earnings.<\/p>\n<\/li>\n<li>\n      Oct. 26\u2014Third-quarter earnings.<\/p>\n<\/li>\n<\/ul>\n<p><em>Michael Brush is a columnist for MarketWatch. At the time of publication, he owned BA. Brush has suggested BA, LUV, UAL and JPM in his stock newsletter,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/www.uponstocks.com\/\" class=\"icon none\">Brush Up on Stocks<\/a>. Follow him on Twitter @mbrushstocks<\/em><\/p>\n<p><strong>Don\u2019t miss:<\/strong> 5 smart ways to shift your investments as the Fed gets ready for a big move<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Michael Brush\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Michael_Brush\"><\/span>Michael Brush<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-74D1-0FA2302E2BD9%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#StockWatch: Here\u2019s why Boeing\u2019s stock will soar&#8221; The aircraft maker\u2019s two big problems are temporary and it will soon see a boost to sales and cash flow from its massive backlog of orders. Founded by lumber tycoon William Boeing in Seattle in 1916, Boeing has grown to become one of two major plane manufacturers in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":282815,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-282814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/282814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=282814"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/282814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/282815"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=282814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=282814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=282814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}