From Nasdaq:

Boeing stock (NYSE: BA) is trading at $229 per share, about 10% below its level in March 2021. Recent incidents, like the cabin side panel detachment midair, caused a 10% drop this week following Federal Aviation Administration’s grounding of Boeing 737 Max 9 aircraft. Despite the dip, Boeing’s stock is expected to see higher levels due to strong aircraft demand and production.

Boeing stock returns showed -6% in 2021, -5% in 2022, and 37% in 2023. Comparatively, the S&P 500 showed returns of 27% in 2021, -19% in 2022, and 24% in 2023. These returns indicate that Boeing underperformed the S&P in 2021. For more information refer to the High Quality (HQ) Portfolio.

Boeing expects to convert over 90% of its $469 billion backlog (5,000 planes) to revenue by 2027. The company estimates a return to pre-inflation shock level, which would require a gain of around 18% from $230 to $235. A detailed analysis captures Boeing stock trends during the market turbulence seen over 2022 and its performance during the 2008 recession.

Boeing’s fundamentals reversed in 2023 with a rise in deliveries and a sales increase to $56 billion for the nine-month period ending Sep 2023. However, the company’s debt doubled from $27 billion in 2019 to $57 billion while its cash reserves remain at $15 billion, making it financially equipped to meet its obligations.

Given the Federal Reserve’s efforts to stabilize inflation rates, BA stock has the potential for gains once worries of a potential recession are abated. However, macroeconomic factors and the ongoing issues related to the grounding of 737 Max 9 aircraft pose risks. Comparing to its peers, the stock’s returns trail the S&P 500.

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Read more: Will Boeing Stock Recover To Its Highs of Over $250?