11 Best Aerospace and Defense Stocks to Buy Right Now

6. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 52

The Boeing Company (NYSE:BA) is a leading American aerospace and defense corporation that specializes in the design, production, and sale of aircraft, rotorcraft, rockets, satellites, telecommunications equipment, and missiles globally. It operates through three main business segments including Commercial Airplanes, Defense, Space, and Security, and Global Services.

The Boeing Company (NYSE:BA) is currently navigating a challenging period but has several factors that could lead to a recovery, making it one of the best aerospace and defense stocks to buy right now. The company reported a significant net loss of $6.17 billion in Q3 2024, contributing to nearly $8 billion in total losses for the year so far. This has raised concerns among investors about the company’s financial health. Moreover, the company has also faced ongoing supply chain disruptions and production slowdowns, particularly with its 737 MAX and other aircraft models. These issues have been exacerbated by a recent seven-week labor strike that halted production on key programs.

However, on the bright side, its backlog is valued at approximately $500 billion, which represents more than seven years of expected sales based on 2024 projections. This backlog includes numerous orders for commercial aircraft, indicating strong future demand. Moreover, the appointment of Kelly Ortberg as CEO is seen as a pivotal move. He aims to reset investor expectations and improve operational processes, particularly within Boeing’s defense segment, which has struggled with project estimations.

Fidelity Dividend Growth Fund stated the following regarding The Boeing Company (NYSE:BA) in its Q3 2024 investor letter:

“Overweighting The Boeing Company (NYSE:BA) also worked against the fund. The stock returned about -16% the past three months, sliding considerably in late July, as Q2 financial results for the aerospace giant came up well short of Wall Street’s expectations amid bigger-than-anticipated losses in both its commercial aviation and defense businesses. In July, the firm named former Rockwell Collins CEO Kelly Ortberg as its new president and CEO in an effort to move past ongoing production issues, cost overruns and delivery delays.”