The Boeing Company (BA) Fell as Results Fell Short of Expectations

Fidelity Investments, an investment management company, recently released its “Fidelity Dividend Growth Fund” third quarter 2024 investor letter.  A copy of the letter can be downloaded here. Fidelity Dividend Growth Fund is a diversified domestic equity strategy with a focus on large-cap core. The portfolio invests in large and mid-cap firms with potential for sustainable dividend growth. The fund’s Retail Class shares gained 4.42% in the third quarter, underperforming the 5.89% advance of the benchmark S&P 500 index. The Federal Reserve’s long-awaited shift to lowering interest rates, the promise of artificial intelligence, and robust corporate profitability drove the US stocks higher in Q3. In addition, you can check the fund’s top 5 holdings to know its best picks in 2024.

Fidelity Dividend Growth Fund highlighted stocks like The Boeing Company (NYSE:BA), in the third quarter 2024 investor letter. The Boeing Company (NYSE:BA) is an aerospace company, that designs, develops, manufactures, and sells commercial and military aircraft, satellites, and space systems. The one-month return of The Boeing Company (NYSE:BA) was 8.18%, and its shares lost 36.70% of their value over the last 52 weeks. On December 9, 2024, The Boeing Company (NYSE:BA) stock closed at $157.04 per share with a market capitalization of $117.494 billion.

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.”

A Boeing 737 aircrafts parked in an airport terminal with passengers awaiting to board.

The Boeing Company (NYSE:BA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held The Boeing Company (NYSE:BA) at the end of the third quarter which was 42 in the previous quarter. In the third quarter, the Boeing Company’s (NYSE:BA) revenue was $17.8 billion, a 1% decrease, driven mostly by reduced commercial wide body deliveries. While we acknowledge the potential of The Boeing Company (NYSE:BA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed The Boeing Company (NYSE:BA) and shared the list of top stocks that are leading the market in investing in their growth according to Goldman Sachs. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.