Join the NASDAQ Community today and get free, instant access to portfolios, stock ratings, real-time alerts, and more! BA has been flying high lately. In fact, BA stock was having a good run before the election of Trump: The performance is in stark contrast to what happened a couple years before, when BA stock essentially treaded water.

Should I Buy Boeing Co (BA) Stock? 3 Pros, 3 Cons | InvestorPlace

Keep in mind that the company is in the midst of various major launches, including the MAX jetliner and the There is also the T-X trainer military aircraft. According to the most recent earnings call from CEO Dennis Muilenburg:. This is certainly a great vision. But then again, Boeing stock definitely has its challenges. With that as a backdrop, here are three pros and three cons prospective or current BA stock investors need to consider:. For more than a century, Boeing has been at the forefront of innovation.

The company also has a history of making bet-the-company investments, as seen with the development of the back in the late s. As of now, Boeing is the world's largest aerospace company and it has customers in countries. Besides building commercial and military jets like F and F fighters , the company also develops satellites, weapons, launch systems and advanced information technologies.

They certainly look promising for BA stock. But there should be continued strong demand in the Asia-Pacific region. Then again, according to the International Air Transport Association, passenger demand is expected to double by , to about 5. Keep in mind that by China is expected to be the world's largest aviation market. They continue to be solid.

As for the current year, the company also expects a similar amount. Last year, the company repurchased a hefty Boeing stock is not particularly cheap, with the price-to-earnings ratio at 24X. By comparison, Lockheed Martin Corporation NYSE: LMT sports a multiple of only 15X and both Northrop Grumman Corporation NYSE: NOC and General Dynamics Corporation NYSE: GD trade at about 20X. Wall Street sell-side analysts are also getting cautious.

This is actually a big-time factor for Boeing stock. With the price of crude at low levels, there is not as much need for airlines to buy fuel-efficient planes. In fact, there are already signs of this.

From to , the number of commercial plane orders went from to And given the big price tags, it does not take too much of a drop to have a material impact on revenues and profits. This is always an issue with BA stock, but with the election of Trump, the impact could be even more significant. First of all, there is the impact of Twitter Inc NYSE: Just one tweet can knock a couple percentage points off Boeing stock! And Trump has also used his power to negotiate on government contracts as well, which could weigh on margins.

If this happens, there will be less funding for purchase orders. For the long-term, BA should benefit nicely - both from the commercial and military businesses. More importantly, Boeing is one of the few companies with the scale to be a key player in these markets.

BA | Boeing Stock - zuwywakybobu.web.fc2.com

The problem, though, is that the valuation is being stretched, at least compared to its peers. And there are several factors that could easily take down the BA stock price, such as the political uncertainty with the Trump administration or the risk of slowing orders for commercial jets.

Follow him on Twitter at ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. The post Should I Buy Boeing Co BA Stock? The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Enter up to 25 symbols separated by commas or spaces in the text box below. These symbols will be available during your session for use on applicable pages.

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