Boeing Taxis to Top Short Range in November

Boeing

licensed in letters
, Co is the leading engineer and manufacturer of everything from aerospace, from jumbo jets to air defense systems. Unfortunately, that doesn’t mean 2020 has been kind to them, in fact quite the opposite, as the company has bled over $ 15 billion in 9 months.

The bleeding began last year when the company was forced to ground all 400 structures of its 737 MAX aircraft in the back of two fatal accidents. When the coronavirus pandemic hit, Boeing’s problems increased tenfold when the airliner canceled contracts they could no longer pay, leaving Boeing with hundreds of planes and nowhere to fly.

But now, the company’s fortunes may be about to turn, as the FAA (Federal Aviation Administration) has finally cleared the Boeing 737 MAX for take off. After 20 months of investigation and missed deadlines, the company has announced that it has patched the faulty software – some bits of erroneous code in the system designed to keep the plane level mid-flight.

FAA approval should help remove fears and criticism from governments and airlines around the world. The company predicts many other countries will soon follow, from Canada to Europe, although it is unclear when, or if, China will recertify the 737. Boeing is now free to place the 400 airframes built but not delivered on the ground.

Now their fight will be sold to a lukewarm market that is wary of the fatal accidents of the past.

In recent statements, Boeing has admitted that it is preparing to face depressed demand in the coming years, especially for its international-size products. In addition to the 6,700 employees cut so far, the company intends to further downsize as it cuts production rates across the board, down to a handful of jets each month by mid-2021.

So what does this have to do with your actions?

All of these factors contribute to the current state of Boeing’s stock, which, unfortunately, is nowhere near pre-pandemic highs. However, just because Boeing got an unattractive rating last month doesn’t mean that no money can be made for the savvy investor this month.

That’s why the Q.ai deep learning algorithm is here to help. Our AI (artificial intelligence) provides an in-depth view of the current state of investments of all shapes and sizes so you don’t have to do your own research.

Without further ado, let’s take a closer look at Boeing’s financial health.

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Boeing Co (BA) in figures

Boeing, Co closed down 3.2% Wednesday night, ending the week at $ 203.30 with a volume of 65.7 million deals, nearly double the average volume for the week.

And while Boeing closed Wednesday, its shares have been on a steady upward trend over the past few weeks, as evidenced by the 22-day average price of $ 169.22.

Overall, the company’s shares are sitting at 38.6% for the year. Boeing’s EPS is in the tank too: earnings per share are at a pitiful $ 1.12, down from $ 13.85 36 months earlier.

The company’s other financial metrics have also declined across the board due to a combination of long-term trends (thanks to the 737 MAX), as well as rising costs and declining demand from the coronavirus pandemic.

For example, Boeing’s revenue posted just under $ 76.7 billion in the most recent fiscal year compared to a much healthier inbound cash flow of $ 94 billion. Similarly, the company’s operating income is down to a measly $ 2.1 billion from $ 10.1 billion three years ago.

On the bright side, however, Boeing’s 12-month future revenue has few resources to grow. As such, the company is expected to see growth of nearly 25% over the next year.

So what is the verdict?

Boeing is a good company in a bad situation, but it seems that for a time its luck may improve. Stock prices are on a steady upward trend, its signature 737 line is clear for takeoff, and current market interest has increased trades to nearly $ 70 million in one day.

However, if the outlook improves, this is the first in a long series of hurdles Boeing will have to overcome in order to return to profit. While stocks are rallying, they are sure to slide again as the good news fades and investor interest increases. And, with today’s air travel reality leading to lukewarm markets at best, it will take months, or even years, before you can unload more than a handful of your fleet on the ground.

And it’s not just us.

Our AI has also seen the writing on the wall, as evidenced by Boeing’s below-average report card: C for Techniques, D for Growth and Low Momentum Volatility, and a big, thick F for Quality Value. As a result, Boeing is ranked Top Short for the month of November. Shop if you want to climb to the top, but don’t forget to get out before the water gets too cold.

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