5 Best Aerospace Stocks To Buy

2. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 53

The Boeing Company (NYSE:BA) was incorporated in 1916 and is based in Arlington, Virginia. The company designs, manufactures, services, and supports commercial jetliners, military aircraft, satellites, missile defense, and human space flight and launch systems worldwide. The company operates through four segments – Commercial Airplanes, Defense, Space & Security, Global Services, and Boeing Capital. 

Sheila Kahyaoglu, an analyst at Jefferies, commented on reports from Leeham News and Airfinance Journal that certain 737 MAX deliveries are being delayed by up to a year due to a new software issue. However, according to the analyst, the problem with the Option Selection Software that is causing the delay is not actually new, and the estimated impact is around 30 to 40 aircraft. The analyst does not believe this issue will affect the delivery guidance for the year and maintained a Buy rating on The Boeing Company (NYSE:BA) shares on March 6, with a price target of $250.

According to Insider Monkey’s fourth quarter database, 53 hedge funds were bullish on The Boeing Company (NYSE:BA), up from 42 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a prominent stakeholder of the company, with 1.3 million shares worth $250.2 million. 

Jackson Square Partners made the following comment about The Boeing Company (NYSE:BA) in its Q3 2022 investor letter:

“For The Boeing Company (NYSE:BA)–in short, we believe the worst of Boeing’s idiosyncratic issues are behind it, the airframe duopoly remains as protected as ever, and at current prices (where we’ve been adding), the stock is trading around ~6x FCF on 2025E. Current airframe production is running materially below expected travel demand over the next 5-10 years, creating a structural supply/demand imbalance that we believe will drive a decade of strong growth in civil aerospace from here. In our 2Q’22 correspondence, we described the attributes of our ideal growth ballast and said we hoped to convert another in the coming months – we believe Boeing checks all those boxes.”