Jim Cramer’s Ultimate Stock Picks: 10 Hot Stocks to Consider

7. The Boeing Company (NYSE:BA)

Number of Hedge Fund Investors: 42

Jim Cramer points out that The Boeing Company (NYSE:BA)’s shares are facing challenges after unionized workers in the Pacific Northwest voted strongly against a proposed contract. The potential strike by machinists could be expensive for The Boeing Company (NYSE:BA) and might push the company to raise additional capital. Cramer has expressed concerns about The Boeing Company (NYSE:BA)’s free cash flow situation.

“Boeing shares are under pressure after unionized factory workers in the Pacific Northwest overwhelmingly voted against a tentative contract. The machinists’ strike may prove costly and could be the last straw for Boeing needing to raise capital. I’ve been worried about Boeing’s free cash flow outlook.”

The Boeing Company (NYSE:BA)’s positive investment outlook is supported by its gradual recovery, growing demand for its commercial aircraft, and expected improvements in free cash flow (FCF). Despite supply chain issues, The Boeing Company (NYSE:BA) has seen rising demand for key models like the 737 MAX and 787. Deliveries of the 737 MAX are projected to increase from about 380 in 2023 to 535 in 2024, to reach 600 deliveries in the future. This strong demand is likely to boost revenue and expand The Boeing Company (NYSE:BA)’s market share.

The Boeing Company (NYSE:BA)’s free cash flow is also expected to improve significantly. The 737 MAX and 787 are anticipated to contribute $2.8 billion and $1.7 billion to FCF by 2025, respectively, providing financial flexibility for managing debt and funding growth. Although The Boeing Company (NYSE:BA) reported a GAAP loss per share of $2.33 in Q2 2024, its Global Services segment saw a 5% increase in revenue year-over-year, showing the company’s resilience.

Analysts are optimistic, with RBC upgrading the stock to “Outperform” and raising the target price to $275, indicating confidence in The Boeing Company (NYSE:BA)’s recovery and future potential. Despite some short-term challenges, The Boeing Company (NYSE:BA)’s improving production rates, strong demand, and significant free cash flow make it an attractive long-term investment.