Boeing Reemerges as a Buy and Hold Stock Not to Be Ignored
Finding the right stocks to buy requires some finesse and anticipation. Here's why this battered name remains a favorite even as the market swoons.
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For the past six years Boeing BA has worked hard to fix itself following two tragedies involving their 737 MAX aircraft. As of today the company is working hard to settle the cases and put this behind them. Boeing always has the eye of the U.S. government and other countries as well, as it is an important business for commerce, travel, defense and space.
Yet following those two disasters the company kept tripping over itself, more interested in pleasing shareholders with empty promises rather than truly fixing their internal problems, which were mounting. Sentiment at Boeing was extremely poor, as many employees lashed out at policies and some even started blowing the whistle on the company. It all added up to chaos, and the stock reflected it as it lost more than 74% of its value over a 2 1/2 year span and was, no question, the worst-performing stock in the Dow Industrial Average.
But with a change in the C-suite to new CEO Kelly Ortberg, Boeing has resurfaced as a name you want to buy and hold. First time that sentiment has been talked about in years...
Charting Boeing's Flight Path
The technical picture is much improved, though still a bit murky. We have a nice rally up towards resistance, but the $200 level is not going to be easy to exceed. There are sellers lurking that will use that rally to unload shares, hence resistance. Over time that will clear out but for now the stock is rangebound.
We could see a lift, however, later in the year. I suspect a move towards $250 eventually should be anticipated. Just give it about 12-14 months time.
