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.
|Symbol for Invest.MT5 Account:||BA|
|Date of Idea:||13 Dec 2022|
|Time Line:||1 - 6 months|
|Position Size for Invest.MT5 Account:||Max 5%|
- 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:
- Commercial aeroplane deliveries
- Defence, space and security
- Global services
- 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.
- Open an account with Admirals to access the Trader’s Room.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.
- 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.
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