10 Worst Performing Dow Stocks Year-to-Date

2. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 42

Share Price Performance Year-to-Date: -36.52%

The Boeing Company (NYSE:BA) is an American company that specializes in the design, manufacture, and sale of airplanes, rotorcraft, rockets, satellites, and defense equipment worldwide. Its diverse operations are organized into three main divisions: Commercial Airplanes, Defense, Space & Security, and Global Services. It is also a major exporter and continues to influence industries ranging from aviation to space exploration.

Boeing (NYSE:BA) has been facing significant challenges for a while now, which include, labor strikes, management changes, a deteriorating credit profile, and several consecutive years of earnings losses. In the second quarter of 2024, the company missed both revenue and earnings per share estimates, with a continued decline in 737 MAX deliveries. Its cash burn also worsened, and its leverage ratio rose significantly.

As reported by TipRanks on October 21, Bank of America Securities analyst Ronald Epstein maintained a Hold rating on Boeing (NYSE:BA) with a $170 price target. The analyst’s cautious stance is influenced by several factors. While the recent labor proposal between the company and the International Association of Machinists (IAM) leadership represents progress, it still requires union member approval, making the outcome of the vote critical to resolving the ongoing strike affecting operations.

Additionally, uncertainties persist, especially regarding pension cuts that could impact employee morale. The company is also facing challenges such as potential equity raises and workforce reductions.

On the other hand, Peter Arment from Robert W. Baird reiterated a Buy rating on Boeing (NYSE:BA) with a price target of $240. The analyst views the strategic contract agreement with the IAM union in a positive light. It aims to resolve the ongoing strike and includes significant wage increases and bonuses likely to gain member approval. The agreement is expected to stabilize operations and improve workforce morale.

Additionally, the company’s plans to raise equity capital and reduce its workforce are expected to strengthen its balance sheet and lower cash interest costs.