BA trade ideas
Boeing Stock Climbs on CEO Appointment Despite Earnings MissOverview
Dow Jones aerospace giant Boeing (NYSE: NYSE:BA ) experienced an unexpected stock rise after appointing a new CEO, despite missing estimates for its second-quarter results. Here’s a comprehensive analysis of Boeing’s recent performance, the challenges it faces, and what the future holds under its new leadership.
Q2 Earnings Report: A Disappointing Performance
Boeing's second-quarter financial results revealed a deepening loss, reporting an adjusted loss of $2.90 per share. This was significantly wider than the FactSet analysts' expected loss of $1.90 per share and a marked increase from the $0.82 per share loss in the same period last year. The company's total revenue fell by 15% to $16.87 billion, missing the estimated $17.35 billion.
Commercial Airplane Segment Struggles
The commercial airplane segment faced severe challenges, with revenue plummeting 32% to $6 billion, driven by a corresponding 32% drop in deliveries. Boeing delivered 92 airplanes during the quarter, maintaining a robust backlog of over 5,400 planes valued at $437 billion. Despite the backlog, the immediate decline in deliveries and revenue underscores the operational difficulties Boeing is grappling with.
Efforts to Improve Safety and Quality
In response to a series of mechanical issues earlier this year, Boeing submitted a comprehensive safety and quality plan to the Federal Aviation Administration (FAA). Current CEO Dave Calhoun emphasized the company’s commitment to enhancing its quality management system, stating, "While we have more work ahead, the steps we're taking will help stabilize our operations."
Production Outlook
Boeing ( NYSE:BA ) plans to increase production of its 737 aircraft to 38 planes per month by the end of the year and boost 787 production to five planes per month. These production increases are crucial for Boeing as it aims to recover from recent setbacks and meet growing market demand.
Performance in Other Segments
Boeing's defense, space, and security revenue saw a slight decline of 2% to $6.02 billion. However, the global services segment reported a 3% increase in revenue to $4.89 billion. Despite these mixed results, Boeing's diversified portfolio provides a buffer against the challenges faced in the commercial airplane segment.
Free Cash Flow and Financial Health
A major concern for investors is Boeing’s free cash flow, which was negative $4.3 billion for the quarter, compared to a positive $2.6 billion in the same quarter last year. Managing cash flow effectively will be critical for Boeing as it balances investment in production and innovation with financial stability.
Strategic Acquisition
In early July, Boeing announced a strategic acquisition, agreeing to buy supplier Spirit AeroSystems (NYSE: NYSE:SPR ) for $4.7 billion. This deal, expected to close in mid-2025, aims to enhance Boeing’s supply chain capabilities and support its long-term growth strategy.
Leadership Change: A New CEO
A significant development for Boeing is the appointment of Robert K. "Kelly" Ortberg as the company’s new president and CEO, effective August 8. Ortberg, 64, brings over 35 years of leadership experience in the aerospace industry. He previously led Rockwell Collins, overseeing its integration with United Technologies and later with RTX Corporation.
Ortberg will succeed Dave Calhoun, who announced his plans to retire earlier this year. Calhoun has been with Boeing since 2009 and has served as CEO since January 2020, navigating the company through significant challenges, including the 737 Max crisis and the impacts of the COVID-19 pandemic.
Market Reaction
Despite the disappointing earnings report, Boeing ( NYSE:BA ) stock climbed 1.5% early Wednesday on the news of Ortberg’s appointment. The stock has rebounded from its late April lows but remains down more than 28% in 2024, making it one of the worst-performing stocks on the Dow Jones Industrial Average.
The stock currently has a Relative Strength Index (RSI) of 55.31, which suggests that there is a significant potential for strong growth in the near future. This particular figure is especially notable given that the stock has recently demonstrated a falling wedge pattern, a formation that is generally recognized as indicative of impending bullish reversals in the price trend.
This pattern is often interpreted as a precursor to an upward movement in stock prices. As a result, market participants are beginning to anticipate a decisive move toward the pivotal $217 point. Such a movement is expected to further reinforce Boeing's existing rising wedge formation, which aligns with the notion of a bullish shift in the stock's trajectory. Consequently, this anticipated behavior is likely to bolster investor confidence and enthusiasm surrounding the stock, as it suggests a positive turnaround and an upward momentum in its future performance.
Challenges Ahead
Ortberg will face several significant challenges as he steps into his new role. Boeing ( NYSE:BA ) is dealing with persistent financial losses, increased regulatory scrutiny, and a crisis of confidence from airline customers facing delivery delays. Additionally, the company is engaged in tense labor negotiations, with the threat of a strike looming.
Conclusion
Boeing’s Q2 earnings report highlighted ongoing operational and financial challenges. However, the appointment of Kelly Ortberg as CEO brings renewed optimism for the company's future. With his extensive experience and proven leadership in the aerospace industry, Ortberg is well-positioned to steer Boeing through its current difficulties and towards a more stable and prosperous future.
As Boeing ( NYSE:BA ) works to enhance its safety and quality systems, ramp up production, and navigate regulatory and financial hurdles, investors will be closely watching to see if these efforts translate into a sustainable recovery and long-term growth. With a strong backlog, strategic acquisitions, and a focus on operational excellence, Boeing aims to regain its footing and reaffirm its position as a leader in the aerospace industry.
Boeing (BA)Long Entry: Above $190 (Confirmation of breakout above consolidation)
Targets: $197.91 (Immediate), $202.81 (Medium term), $223.40 (Long term)
Stop Loss: $182.23
Bearish Scenario:
Short Entry: Below $180 (Confirmation of breakdown below support)
Targets: $171.83 (Immediate), $161.64 (Medium term), $141.06 (Long term)
Stop Loss: $190
Speculative Price Target:
12-Month: $213.64 (+14.33% from current levels)
Bullish Peak: $275.00 (+47.17%)
Bearish Bottom: $140.00 (-25.08%)
Boeing's current technical setup shows potential for a significant move. With mixed indicators but strong buy signals from moving averages and a neutral RSI, traders should prepare for a breakout. Watching key levels around $190 for a long position or $180 for a short position will be crucial. Given the upcoming earnings report, it's imperative to stay agile and adjust strategies based on market reactions.
Boing (BA) Earnings Prediction and Technical AnalysisBased on recent trends and historical data, there's a balanced outlook for Boeing's upcoming earnings report.
Revenue has seen a slight decrease on average, but EPS has shown minor improvements. With Boeing beating earnings estimates in about 57% of the last seven quarters, there's a moderate chance of positive earnings.
**Technical Analysis:**
- **Resistance Levels:** $200.32 and $215.55
- **Support Levels:** $171.43
- **Indicators:** Bullish MACD crossover, trading near the upper Bollinger Band indicating potential overbought conditions but a bullish trend.
- **Chart Patterns:** Bullish flag pattern and consolidation phase within a blue channel suggest potential upward movement if resistance levels are breached.
Overall, expect a cautious but slightly optimistic earnings report, with technical indicators supporting a potential bullish breakout.
Dr SAUD
Who's trading the wedge for earnings? An ascending wedge followed by a huge decline gives a bad sign. I think the earnings call coming next week. There's going to be a huge decline. Not sure about how much percent but it's going to be a good show to watch! 🍿 A good thing is to do is to trade the wedge before the earnings. If you're not sure, that's what I've been doing just to stay on the safe side, but I believe it's going to drop
Who's trading the wedge for earnings? An ascending wedge followed by a huge decline gives a bad sign. I think the earnings call coming next week. There's going to be a huge decline. Not sure about how much percent but it's going to be a good show to watch! 🍿 A good thing is to do is to trade the wedge before the earnings. If you're not sure, that's what I've been doing just to stay on the safe side, but I believe it's going to drop
BA Channel breakdown possible , US Stock Channel breakdown possible 179 below
price close below 21 ema
176/172/168 expected to test soon
Boeing UpdateI can't say I have had a great past few months holding NYSE:BA , but whatever. I still see value here, I recently flew on a 737 and it went smoothly. I expect the ratio to hold between 3.1 and 3.6 until the company does something right.
If recession is on the horizon, expect cheap NYSE:BA shares in the future. Will be buying the whole way down. One day this will all make sense and I will be extremely rich.
Will provide another Boeing update in a few months.
Hold the line.
Boeing | BA | Long at $180Boeing NYSE:BA is getting bad press (and rightfully so) due to quality/safety assurance issues, but I view this dip as a buying opportunity for future returns. The company expects profitability beyond 2024 and once that happens, I expect this ticker to soar. There may be some pains in the near-term, but long-term, it is in my buy zone at $180.00.
Target #1 = $260
Target #2 = $335
Target #3 = $414
BA - Bear flagging on the daily timeframeBoeing on the Daily timeframe seems to forming a classic bear flag pattern.
I am not short yet on BA for below reasons:
1. From the Daily chart, BA has formed Hammer at the bottom trendline - which may indicate a price move to the upside
2. There is another trendline(blue) - watching to see its reaction there
3. Need a clear confirmation on the breakdown (bear flag breakdown) rather than jumping now
Added BA to my watchlist with alerts in place
if we indeed breakdown, targets to the downside will be 170-160-150
PS: No position yet on the short side, as I am waiting for confirmation
Boeing's CHAMP: Game-Changing EMP Missile Reshapes WarfareThe recent deployment of Boeing's Counter-electronics High-Powered Microwave Advanced Missile Project (CHAMP) marks a significant leap forward in electronic warfare (EW) capabilities. This analysis explores potential investment implications for the defense sector and companies involved in CHAMP's development.
Disruptive Innovation in Electronic Warfare: CHAMP introduces a game-changing weapon – a non-nuclear, precisely targeted EMP missile with minimal collateral damage. This disrupts traditional warfare strategies heavily reliant on kinetic strikes, potentially increasing demand for advanced EW solutions across the board.
Investment Opportunities in Key Players: Companies like Boeing (BA) taking the lead in CHAMP's development, alongside Raytheon (RTN) providing the high-powered microwave technology, and Lockheed Martin (LMT) supplying the delivery platform, are well-positioned to benefit from this disruptive innovation. Their involvement in CHAMP could translate to lucrative government contracts and potentially drive stock prices.
Strategic Advantage and Broader Implications: CHAMP's high-precision targeting offers a significant strategic advantage. Unlike its nuclear predecessors that could blackout entire regions, CHAMP can selectively neutralize specific enemy electronic infrastructure, minimizing civilian casualties. This selective approach could lead to increased investment in EW technologies across the defense sector as nations seek to counter potential threats and gain a strategic edge.
Investment Considerations:
Monitor Defense Sector Performance: Closely track the performance of defense sector companies, particularly BA, RTN, and LMT, as CHAMP's deployment unfolds.
Shifting Defense Spending: Analyze potential shifts in defense spending priorities towards advanced EW technologies as the strategic landscape evolves. Governments recognizing the potential of CHAMP-like capabilities may allocate more resources to develop and acquire similar systems.
Geopolitical Landscape: Consider the broader geopolitical landscape. Increased tensions or conflicts between nations could further elevate the importance of EW capabilities and potentially accelerate the adoption of CHAMP or similar technologies.
Potential Bear Flag in BoeingBoeing has climbed since its last earnings report, but some traders may look for longer-term selling pressure to resume.
The first pattern on today’s chart is the series of higher highs and higher lows since early May. Notice how the aerospace stock seems to have made a lower high in early July. That may be considered a bearish flag resolving to the downside.
Next, some short-, intermediate- and long-term moving averages are close together: the 8- and 21-day exponential, plus the 50- and 100-day simple. Those could suggest a consolidation phase is nearing an end.
Third, Bollinger Bandwidth is starting to expand after narrowing. Will that period of price compression give way to expansion?
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$BA Megaphone pt.2Part one was an absolute Masterpiece and this reaction so far is proving the wizards thesis of load up right. Boeing took out any major whistle blowers ;p , the rest have nothing serious based off the fact they're still alive (jokes). But the "high" hand has been drawn for any followers of Proffesseas.
Technicals showing bounce (mini cup n handle?) I think getting this at 2017 price is quite a bargain LONG TERM. 183.92 now. (Mid point of megaphone might make good strike price for LEAP calls)
Boeing ~ $300-$320Boeing is slowly recovering after an 80% plum. The correction is taking place in the form of double zigzag WXY. Correction target = $300-$320 range
BA covered callA position I am in for a WHILE. But this is purely and simply and BUY LOW, sell high, be 'paytient' type of investment.
AND I AM IN.
:-)
Boeing resumes aircraft deliveries to China despite challengesBoeing Co. has restarted wide-body aircraft deliveries to China after a brief suspension due to inspections by Chinese regulators, marking a significant development for the US aircraft manufacturer. The resumption of deliveries is particularly crucial as Boeing has faced ongoing disruptions since 2019, primarily due to the fallout from two crashes involving the MAX 8 aircraft and growing geopolitical tensions between Washington and Beijing.
This latest development could provide a much-needed boost to Boeing, which has been grappling with safety and flight quality challenges that have affected its delivery schedules and financial performance. Investors will likely receive the resumption well since it indicates potential stabilisation and progress in one of the company's key markets.
Technical analysis of Boeing Co. (NYSE:BA)
Looking at the stock chart of Boeing from a technical analysis perspective:
Timeframe : Daily (D1)
Current trend : the stock has been in a global uptrend since the end of June 2022
Resistance level : 193.40 USD
Support level : 162.75 USD
Current position : the stock is currently testing the uptrend's support line
Potential downtrend target : if a downtrend forms, the downside target could be at 150.50 USD
Short-term target : if the uptrend resumes and the stock breaks through the resistance at 193.40 USD, a short-term target could be set at 215.00 USD
Medium-term target : the price could rise to 230.00 USD if the upward momentum continues
Investors should monitor Boeing's stock closely, as the resumption of deliveries to China could catalyse further stock movement, reflecting the company's operational recovery and potential for regained footing in the international market.
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Boeing Long opportunityBoeing closed above the 20 and 50 EMA. The MACD shows a bullish crossover, and there’s also an 8x21 bullish EMA cross. Additionally, the DMI is showing a bullish cross and the money flow is rising. This presents a wonderful long opportunity.
** It is only chart analysis. It is not a financial advise.
The head and shoulder of the yearFor more than five years I have been investing and diving deep in the process of creating airplanes. Boeing should have a sellers market, but due to their incompetence in delivering safe planes they now risk lossing goverment contracts due to their ongoing fraud cases. Their defence department is 32% of their revenue (2023) and most of it comes from the US government which would by law have to stop giving Boeing new contracts. The US government can abstain from this and still give Boeing contracts, but it will diffently have an impact. Beyond this the announced the purchase of SPR. This could give them some positive marginals for the production of MAX planes which SPR have been an important part of. However boeing is still restriced by the FAA to not produce more than 34 MAX planes per month which is already way behind their expected deliveries for the year. Boeing is too big to fail, but not to big to be held accountable for their misconducts and be faced out in the portfolio of multiple pension funds. The current head and shoulds I see for the company is just the tip of the iceberg at the current look out. Their order book is generally filled out for the next 8-10 years, but no growth can come beyond that if they are behind on deliveries. I have a fair price at 97 USD per share of Boeing. I do not see this coming into effect yet however I would not be surprised to see them trading at or below 159 USD before years end.
Looking for a short swing on BA.🔉Sound on!🔉
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BOEING back to the POC around $153 or lowerBoeing is looking weak at the moment, and eyes are definitely on the $153 area or below where previous POC (point of control was established)
Reasons to consider BA keeps heading sound.
1. 737 MAX grounding: This is a major issue. The 737 MAX is a Boeing aircraft model that was grounded worldwide in 2019 following two deadly crashes attributed to a faulty flight control system, the MCAS. The grounding significantly impacted Boeing's finances and reputation. While the plane has since been cleared to fly again after modifications, the accidents and grounding cast a long shadow.
2. Scrutiny over production practices: Following the 737 MAX crashes, there were concerns raised about Boeing's production practices and its relationship with the Federal Aviation Administration (FAA), the agency responsible for certifying aircraft safety. Government hearings investigated these concerns, with allegations of Boeing prioritizing speed over safety in getting the 737 MAX to market.
3. Continued impact on orders and production: The fallout from the MAX grounding and production issues has led to airlines delaying or cancelling orders for Boeing aircraft. This has slowed production and further strained Boeing's finances.
4. Increased competition: Airbus, Boeing's main competitor, has benefited from the 737 MAX grounding, capturing new orders and market share.
Lastly, their move today to shift their offer for SPIRIT to mostly stock from cash indicates the company is feeling pressure and its being shown in the chart.
BABought a starter today. Assuming larger waves 1-2 ready (wave 2 as a flat, although, with a very impulsive-looking waves A and B :))
Price is starting to print the first impulse up
