Trading Boeing Post Q3 Earnings & New Aircraft Deal

Boeing posted a massive loss in its latest third-quarter earnings report. However, that hasn’t stopped the stock from rallying more than 60% higher from the lows of the year so far.  

Learn more about Boeing’s $3.3 billion quarterly loss, the new multi-billion dollar aircraft order from Air India and United Airlines, what the analysts are forecasting for the stock and the latest hedge fund activity.

• The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Trading Boeing Stock Pros and Cons

Boeing is an aerospace company with multiple revenue streams broken down into four different categories:  

1. Commercial aeroplane deliveries 
2. Defence, space and security 
3. Global services 
4. Boeing Capital 

In its latest third-quarter earnings report, Boeing announced a $2.8 billion loss in its defence, space and security division. Boeing’s biggest client in this category is the US Department of Defense, providing military weapons and aircraft. 

The loss is primarily down to the Air Force One contract negotiated with the Trump administration. As it is a fixed-price contract it does not take into consideration the change in inflation. With costs of materials and labour rising around the world, Boeing has had to absorb the loss. 

However, the commercial aeroplane division increased its quarterly revenue to $6.3 billion due to the delivery of several, new 787 commercial jets. The delivery of these jets has resumed after two years of delays from the FAA due to safety concerns.  

This does not take into consideration a new deal announced with Air India, the second-largest carrier in Asia outside of China. The airline is preparing an order for 500 planes from Boeing and its European rival Airbus. There are also reports of a major deal for its 787 Dreamliner jet with United Airlines. 

There are some concerns that could weigh on its stock price. Most notably the US’s relations with China. Historically, China was responsible for more than 20% of Boeing’s commercial revenue. However, Beijing’s recent sanctions against a Boeing defence executive are affecting its revenue from China.  

Boeing Hedge Fund Holdings

The latest 13F filing report submitted to the Securities and Exchange Commission of 468 hedge funds shows that hedge funds increased their holdings in Boeing shares by 201.0k shares in the last quarter.  

The overall trend quarter by quarter has been higher since the beginning of the year. But this could be due to the fact the stock price crashed by 80% from 2019 to 2020.

Boeing Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Boeing stock forecast in the past 3 months, there are currently 12 buy, 3 hold and 1 sell ratings on the stock. The highest price level for a Boeing stock forecast is $281.00 with the lowest price target at $121.00. 

The average price target for a Boeing stock forecast is $198.73.

An Example Trading Idea for the Boeing Stock Price

An example trading idea for the Boeing share price could be as follows:  

• Buy the stock on a break above $190.00 to allow for current market volatility. 
• Target the highest analyst price target at $281.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 6 months  
• If you buy 10 Boeing shares:  
  • If target is reached = $910.00 potential profit ($281.00 - $190.00 *10 shares).

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering that Boeing was down 50% at one point this year.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Boeing stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall. 

How to Buy Boeing Stock in 4 Steps  

With Admirals, you can buy shares in companies like Boeing with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

1. Open an account with Admirals to access the Trader’s Room.   
2. Click on Trade on one of your live or demo accounts to open the web platform.   
3. Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.   
4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level. 

Click on the banner below to trade Boeing stock today. ▼▼▼ 

Do You See the Boeing Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Boeing's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 

INFORMATION ABOUT ANALYTICAL MATERIALS:   

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   

• This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    
• Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
• With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
• The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    

• Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    
• Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
• Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.