12 Best Aviation Stocks to Buy According to Hedge Funds

3. The Boeing Company (NYSE:BA)

Number of Hedge Fund Investors: 52 

The Boeing Company (NYSE:BA) is a major defense and aerospace company. Commercial aircraft, military, space, and security, and global services are its three business segments. Boeing’s commercial jets division competes with Airbus in the development of aircraft that can seat more than 130 people. The company’s defense, space, and security division competes with Lockheed, Northrop, and numerous other companies to produce military aircraft, satellites, and weapons. Global Services provides aftermarket assistance to airlines.

The confidence in the overall demand for aerospace products is further strengthened by Boeing’s substantial backlog, which spans many years of manufacturing for the most popular aircraft.

The Boeing Company (NYSE:BA) is in serious financial trouble, having lost $6.17 billion in Q3 2024 and almost $8 billion so far this year. The firm’s losses have been made worse by production slowdowns, supply chain delays, and a recent seven-week labor strike that put a halt to important programs. Nonetheless, the business’s $500 billion backlog, which amounts to more than seven years’ worth of sales, suggests that there will be a strong demand for its commercial aircraft in the future. Kelly Ortberg’s appointment as CEO offers fresh leadership to enhance operational effectiveness and reset investor expectations. Continued execution of its defense programs, as well as backlog fulfillment, could support recovery and future growth.

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.”

Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 5.58 million shares worth $848.85 million as of Q3.