Is Boeing (BA) stock a good buy?

Is Boeing (BA) stock a good buy?

This is a step-by-step stock review to answer the question, is Boeing (BA) stock a good buy?

This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.

What are the 4Ms?

  • MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
  • Meaning – The meaning is the business model and how scalable the revenue streams are.
  • Moat – The moat is how the business compares to other companies in the same Sector and Industry.
  • Management – The management is the track record of the CEO.

What 4M score are we going for?

  • 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
  • 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
  • 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.

Table of Contents

The following links will direct you to key topics to help answer the question, is Boeing (BA) stock a good buy?

  1. Boeing (BA) Company History
  2. MOS
  3. Meaning
  4. Moat
  5. Management
  6. 4M Score
  7. Is Boeing (BA) stock a good buy?

1.Boeing Company History

When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.

  • 1916: William E. Boeing founded Pacific Aero Products Co. in Seattle, Washington, later renamed The Boeing Company.
  • 1917: Built the B&W Seaplane, marking Boeing’s entry into aircraft manufacturing.
  • 1920s: Expanded production with the Model 40, becoming a significant player in the aviation industry.
  • 1930s: Introduced the Boeing 247, the first all-metal commercial airliner, revolutionizing air travel.
  • 1940s: Played a crucial role in World War II, producing military aircraft like the B-17 Flying Fortress and B-29 Superfortress.
  • 1950s: Launched the Boeing 707, the first commercially successful jet airliner, transforming air travel.
  • 1960s-1970s: Developed the iconic 727, 737, and 747 aircraft, cementing its leadership in commercial aviation.
  • 1980s-1990s: Expanded into space with the Space Shuttle program and launched the 777, enhancing long-haul travel.
  • 2000s: Faced challenges with the 787 Dreamliner, but overcame them with innovative technologies and partnerships.
  • 2010s: Introduced the 737 MAX, although faced setbacks with safety issues, leading to a global grounding.
  • 2020s: Focused on recovery and innovation, addressing safety concerns and enhancing sustainability in aviation.

Boeing’s rich history of innovation and resilience has solidified its status as a global leader in aerospace and defense.

2. MOS (Margin of Safety)

When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.

  • Summary: overpriced
  • Score: 11/100
  • MOS: 1%

To see the most up-to-date Summary, Score, and MOS, please log into Tykr.

3. Meaning

When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.

Here is how Boeing (BA) makes money:

  • Commercial Airplanes: Generates revenue from selling commercial aircraft to airlines and leasing companies. This includes popular models like the 737, 787 Dreamliner, and 777.
  • Defense, Space & Security: Earns from producing military aircraft, satellites, and defense systems for governments and defense contractors.
  • Services: Profits from providing support and maintenance services for commercial and military aircraft, including parts, repairs, and upgrades.
  • Space Systems: Gains from manufacturing and launching spacecraft, including satellites and space exploration vehicles.
  • Research & Development: Receives funding through contracts and partnerships for developing advanced technologies and innovations in aerospace.
  • Contracts and Partnerships: Makes money from government contracts and partnerships for various aerospace and defense projects.

Here are a few of the other companies that Boeing has acquired over the years.

  • McDonnell Douglas
  • Hughes Space and Communications
  • Jeppesen
  • Aurora Flight Sciences

4. Moat

When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Boeing stacks up against other companies.

  1. TransDigm Group Incorporated.(TDG) – 89
  2. Cadre Holdings, Inc.(CDRE) – 83
  3. BWX Technologies, Inc.(BWXT) – 78
  4. General Dynamics Corporation.(GD) – 72
  5. Hexcel Corporation.(HXL) – 67
  6. The Boeing Company.(BA) – 50

To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.

5. Management

When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.

  • 737 MAX Crisis Management: Recovered the 737 MAX’s safety certification and restored trust with regulators and customers.
  • COVID-19 Response: Implemented cost-cutting measures and ensured financial stability amid the pandemic.
  • Safety and Quality: Enhanced safety protocols and quality controls.
  • Organizational Restructuring: Streamlined leadership for better efficiency and decision-making.
  • Environmental Initiatives: Advanced sustainable aviation technologies.
  • Market Recovery: Rebuilt market share and relationships with airlines and suppliers.
  • Technological Innovation: Drove aerospace technology advancements.
  • Defense and Space Growth: Expanded defense and space operations with new contracts.
  • Financial Performance: Improved Boeing’s financial stability and long-term profitability.

6. 4M Score

All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.

What 4M score are we going for?

  • 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
  • 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
  • 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.

👉 The 4M Score of Boeing (BA) is 62/100.

To see the most up-to-date 4M Score, please log into Tykr.

7. Is Boeing (BA) stock a good buy?

Some of the top questions investors can have is Boeing (BA) stock a good buy or should I buy Boeing (BA) stock?

Boeing presents a compelling investment opportunity as a top aerospace manufacturer with a broad product range, including commercial airplanes, defense systems, and space technology. The company has a strong market presence and a history of aviation innovation. Although Boeing faced setbacks like the 737 MAX crisis and the COVID-19 pandemic, it has made significant progress in addressing these issues. The company’s focus on safety improvements, fleet modernization, and market expansion enhances its growth prospects. Boeing’s commitment to advancing technology and securing defense contracts strengthens its long-term potential. However, investors should be aware of risks such as economic downturns, regulatory challenges, and supply chain disruptions. Overall, Boeing’s diverse product portfolio and strategic initiatives make it a strong investment choice in the aerospace and defense sectors.

To truly know if Boeing is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.

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