Is The Boeing Company (BA) Too Risky?

Is Boeing too risky?
Some investors worry that The Boeing Company (NYSE:BA) is a risky play because of military spending cuts. Fear not: Its commercial segment has long-term growth ahead and should offset declines in its defense business. Boeing estimates demand will reach 34,000 commercial airplanes as the world’s fleet doubles over the next 20 years. It also estimates this demand to be worth as much as $4.5 trillion.

The upshot is that The Boeing Company (NYSE:BA) has high production capabilities and as demand increases, it will become much more profitable with each aircraft produced. Expect that to contribute sustainable, and increasingly profitable, growth for the company’s bottom line – even with pressure on the defense segment.

The article Boeing Will Continue to Draw Military Interest originally appeared on Fool.com and is written by Daniel Miller.

Motley Fool contributor Daniel Miller has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.