Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Is Boeing Stock Ready For Lift-Off ?

By (Jea Yu )Stock MarketsAug 01, 2022 01:41AM ET
Is Boeing Stock Ready For Lift-Off ?
By (Jea Yu )   |  Aug 01, 2022 01:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

Aerospace giant Boeing (NYSE:BA) stock has rallied strongly off its post-pandemic lows at $113.02 to cut its losses on the year to (-24%). While the pandemic crushed Boeing, it is reaping the benefits of a rebound in the epicenter travel industry. The Company saw demand spike for commercial aircraft as commercial traffic accelerated to the highest levels since pre-COVID 2019 in both North America and Europe as China lags.

Boeing also recorded a positive cash flow of $100 million, a vast improvement from a year ago. The Company is waiting on the Federal Aviation Administration (FAA) clearance to start deliveries on the 787. It has a backlog of $372 billion, which includes over 4,200 commercial airplanes. There is heavy speculation for Boeing to return to profitability in fiscal Q3 2022 as it emerges from the 737 MAX disaster. The Company is ready to turn the corner and emerge stronger. There are still headwinds, including supply chain constraints, logistics, raw materials costs, inflationary pressures, and high fuel costs.

However, Boeing is very bullish on the recovery in air traffic, bolstering the demand for its planes as airlines return to ramping up their fleets. Prudent investors looking for exposure in the recovery of air travel can look for opportunistic pullbacks in Boeing.

Q2 Fiscal 2022 Earnings Release

On Jan. 19, 2022, Boeing released its fiscal second-quarter 2022 results for the quarter ending June 2022. The Company reported an earnings-per-share (EPS) loss of (-$0.37) excluding non-recurring items versus consensus analyst estimates for a loss of (-$0.10), a (-$0.27) miss. Revenues fell (-1.9 %) year-over-year (YoY) to $16.68 billion missing analyst estimates for $17.53 billion. The Company reached a positive operating cash flow of $100 million. The total backlog, including over 4,200 commercial airplane orders, rose to $372 billion. The Company increased production of 737s to 31 per month and waiting on FDA clearance for 787 deliveries.

Boeing CEO Dave Calhoun commented:

“We made important progress across key programs in the second quarter and are building momentum in our turnaround. As we begin to hit key milestones, we were able to generate positive operating cash flow this quarter and remain on track to achieve positive free cash flow for 2022. While we are making meaningful progress, we have more work ahead. We will stay focused on safety, quality, and transparency, as we drive stability, improve performance, and continue to invest in our future.”

Conference Call Takeaways

CEO Calhoun started off with a recap of the Farnborough Air Show, witnessing the 777X in flight and its investment in the eVTOL market through Wisk.

They met with suppliers, customers, and partners and collected over 200 orders and commitments that week for its full line of planes from the 737MAX to the 777X. It underscored the anticipation of flight renewal projects.

The customers are busy and beefing up their fleets in the face of supply chain constraints. He noted many positives in the quarter, including an incredible performance of the 737 MAX and being on the verge of delivering the 787 upon clearance from the FAA. They are prioritizing the predictability of the delivery chain, focusing mainly on the engine supply lines and the constraints engine suppliers are facing.

The commercial service business was up 30%, with strong margins to boot. Operating cash flow has turned positive ahead of plan and is expected to remain cash flow positive through the calendar year 2022. Supply constraints are not deterring the increasing demand from customers as Boeing revamps its airplane fleets for the future to meet significant demand from passengers. COVID is slowing down China, but it, along with geopolitical overhang, should not impact the cash flow positive posture. Global services are on their way back in a big way.

Boeing Stock Chart
Boeing Stock Chart

BA Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides a detailed view of the playing field for BA stock. The weekly rifle chart uptrend put in a double top near the $163.35 Fibonacci (fib) level. The weekly rifle chart breakout has a 5-period moving average (MA) support rising at $148 followed by the 15-period MA support at $142.62. The weekly 50-period MA sits at $186.81. The weekly stochastic formed a mini pup rising through the 40-band. The weekly market structure low (MSL) buy triggered the breakout above $140.70.

The daily uptrend is stalled into a make or break as the 5-period MA starts to slope down at $156.40 with a rising 15-period MA at $151.18. The daily stochastic has fallen through the 80-band. The daily 200-period MA sits at $181.78. The daily upper Bollinger Bands (BBs) sit at $170.06. The daily 50-period MA support sits at $138.37. The lower BBs sits at $125.76. Prudent investors can watch for opportunistic pullback levels at the $147.18, $144.65, $140.70 weekly MSL trigger, $135.59 fib, $130.33 fib, $127.01, $121.49 fib, and the $120.05 fib. The upside trajectories range from the $174.07 fib up to the $202.93 fib level.

Original Post

Is Boeing Stock Ready For Lift-Off ?

Related Articles

Michael Kramer
Stocks Take Cover By Michael Kramer - Nov 30, 2022 4

The S&P 500 finished lower by around 20 points yesterday. It was about rising rates and a stronger dollar. Surprisingly, the VIX moved lower by 1%, which is odd, given Federal...

Is Boeing Stock Ready For Lift-Off ?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email