10 Worst Performing Blue Chip Stocks in 2024

2. Boeing Co (NYSE:BA)

Year to Date Return: -37.81%

Number of Hedge Fund Holders: 42

Boeing Co (NYSE:BA) has carved a niche as one of the largest airplane manufacturers. However, its planes’ safety concerns have sent shockwaves in the industry, denting the company’s fortunes. Over the past year, the stock has shed more than 50% in market value and is down by about 37.81% for the year, making it one of the worst-performing blue chip stocks in 2024.

Boeing Co (NYSE:BA)’s 737 MAX was grounded for 18 months due to two deadly crashes, and an extensive investigation into the company’s manufacturing methods resulted in major delays in other aircraft programs. Failure to meet internal production targets has caused airlines to search for alternatives, depriving Boeing of the revenues it needs most.

The company’s woes have been exacerbated by the failure to agree with the International Association of Machinists and Aerospace Workers (IAM) Union District 751 over a new contract. The stalemate has only made it difficult for the company to ramp up production and meet delivery schedules.

Consequently, the first half of 2024 saw a sharp drop in deliveries of Boeing Co (NYSE:BA)’s narrow-body 737 as management was forced to slow deliveries due to manufacturing quality issues. By the end of the year, management aimed to return to a monthly rate of 38.

Without a doubt, Boeing faces difficulties, and it is uncertain if it will be able to finance the next generation of narrow-body aircraft within the next ten years. Nevertheless, a multi-year backlog guarantees that it can overcome its challenges.

By the end of Q2 2024, 42 out of the 912 hedge funds tracked by Insider Monkey had invested in Boeing Co (NYSE:BA). This notable interest reflects significant confidence in Boeing’s potential among institutional investors.