10 Best WallStreetBets Stocks To Buy Right Now

6. Boeing Co. (NYSE:BA)

Number of Hedge Funds: 42

Boeing Co. (NYSE:BA) is a leading aerospace company that designs, manufactures, and sells airplanes, military aircraft, rotorcraft, rockets, satellites, and missiles worldwide. It also provides leasing and product support services and has operations in over 150 countries.

The company’s 737 MAX production saw a slight decline in Q2 2024, with approximately 90 pre-2023 737-8s remaining in inventory, primarily destined for Chinese and Indian customers, representing a decrease of 20 from the previous quarter. While management expects to deliver most of these planes by year-end, production will gradually wind down as the shadow factory is closed.

Inventory levels for the 737-7 and -10 models remained steady at around 35 airplanes, and certification timelines remained unchanged. The 787 program faced production challenges, including seat delays, resulting in lower deliveries. However, production is expected to reach 5 airplanes per month by year-end. Approximately 35 pre-2023 787s require rework, but progress is being made towards completing this process and shutting down the shadow factory by the end of the year.

Revenue for Q2 2024 missed expectations and was down 14.61%. However, its defense portfolio has seen significant advancements, including the delivery of 7 MH-139 helicopters to the US Air Force and the first CH-47F Block 2 Chinook to the US Army. A major milestone was reached with the F-15EX fighter jet program achieving initial operating capability.

As the company navigates these challenges, it must prioritize restoring its reputation and addressing safety concerns. Boeing Co.’s (NYSE:BA) Defense, Space, and Security (BDS) segment is a cornerstone of national security. As global defense spending continues to rise, the company becomes a compelling investment in the aerospace industry.

Jackson Square Partners made the following comment about The Boeing Company (NYSE:BA) in its Q3 2022 investor letter:

“For The Boeing Company (NYSE:BA)–in short, we believe the worst of Boeing’s idiosyncratic issues are behind it, the airframe duopoly remains as protected as ever, and at current prices (where we’ve been adding), the stock is trading around ~6x FCF on 2025E. Current airframe production is running materially below expected travel demand over the next 5-10 years, creating a structural supply/demand imbalance that we believe will drive a decade of strong growth in civil aerospace from here. In our 2Q’22 correspondence, we described the attributes of our ideal growth ballast and said we hoped to convert another in the coming months – we believe Boeing checks all those boxes.”