10 High Risk High Reward Growth Stocks Stocks To Buy

3. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders In Q2 2024: 42

The Boeing Company (NYSE:BA) is truly a high risk and high reward stock, particularly after what has transpired over the past 12 months. The firm’s aircraft deliveries tanked by 27% in June after production stoppages due to quality concerns impacted its manufacturing operations. The June drop followed a massive 50% delivery drop in May, and to make matters worse for The Boeing Company (NYSE:BA), its defense and space division had to deal with thruster problems on the Starliner spacecraft that eventually forced NASA to bring the ship back un crewed from the International Space Station (ISS) in September after months of deliberation. The Boeing Company (NYSE:BA) also faced potential strikes by its factory employees, but things appear to be moving forward on this front after it announced a deal in September to avert a potential manufacturing shutdown. With a new CEO at its helm, The Boeing Company (NYSE:BA) has to reverse its reputational loss and safety lapses to regain lost industry stature.

The Boeing Company (NYSE:BA)’s management shared key details for its deliveries during the Q2 2024 earnings call:

“The quarter ended with approximately 90 737-8s built prior to 2023, the vast majority for customers in China and India. This is down 20 from last quarter’s value, and we expect approximately 10 more delivered in the month of July. We still expect to deliver most of these airplanes by year-end as we work towards shutting down the shadow factory.

Regarding the -7 and the -10 models, inventory levels remained stable at approximately 35 airplanes and the certification timelines remain unchanged. On the 787, we delivered nine airplanes in the quarter, although the quarter was impacted by lower production, seat delays and other delivery timing items noted previously. We’re starting to work through these issues and delivered six airplanes in July. The program produced below five per month in the quarter as expected and still plans to return to five per month by year-end. We ended the quarter with around 35 airplanes of inventory built prior to 2023 that required rework, which continues to progress steadily. We still expect to finish the rework and shut down the shadow factory by year-end with most of these airplanes delivering this year.”