Should You Buy Boeing After U.S. Stimulus?
Date
3/19/2021 4:27:46 PM
(MENAFN- Baystreet.ca) Boeing (NYSE:BA) is a dominant force in the airline and defence industry around the world. Its stock has climbed 26% in 2021 as of mid-afternoon trading on March 19. Its shares have increased over 160% from the prior year.
The company delivered its annual results in late January. It reported a record net loss of $12 billion. Boeing absorbed a $6.5-billion charge in the fourth quarter against its 777x program.
Meanwhile, the COVID-19 pandemic has put a dent in demand for larger jets that are used for longer, international flights.
Boeing is still reeling from the two deadly 737 Max crashes that claimed the lives of hundreds.
This was immediately followed by the COVID-19 pandemic, which has thrown the global airline industry into chaos. Boeing CEO Dave Calhoun said that he was glad the company was through 2020. He was not alone in that sentiment, in the corporate world or otherwise.
Unfortunately, the aviation sector is set for more challenges in 2021. Boeing will need to adjust as the European giant Airbus has gained ground in the global arena. Defense, space, and security proved reliable in 2020. Total revenues rose 14% in Q4 2020 to $6.77 billion.
Earnings from operations soared to $502 million over $34 million in the prior year.
This top U.S. stock is still in recovery mode after a brutal 2020. However, the future looks brighter especially as the U.S. has established itself as a global leader with its vaccine rollout.
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