Top 10 Stocks on Jim Cramer’s Radar

7. The Boeing Company (NYSE:BA)

Number of Hedge Fund Investors: 42

Wells Fargo has downgraded The Boeing Company (NYSE:BA) to a sell-equivalent rating. Analysts believe that The Boeing Company (NYSE:BA)’s free cash flow per share might peak by 2027 due to high plane development costs, which could also lead to the need for a dilutive equity raise. Jim Cramer notes that it’s important for analysts to address The Boeing Company (NYSE:BA)’s cash flow issues as they work through these challenges.

“Wells Fargo downgraded Boeing to a sell-equivalent underweight rating. The analysts say Boeing’s free cash flow per share could peak by 2027, as plane development costs offset additional product growth, and suggest that the troubled company may need to do a dilutive equity raise. It’s good to see analysts start dealing with Boeing’s weaker cash flow problem.”

The Boeing Company (NYSE:BA) is a strong investment choice as the aerospace industry recovers from the pandemic and global air travel demand increases. The Boeing Company (NYSE:BA) is well-positioned with a robust backlog of orders for its 737 MAX and 787 Dreamliner models, which are expected to benefit from rising passenger traffic. The Boeing Company (NYSE:BA)’s extensive product range and dominant market position, alongside its defense and space division, offer stability and diversification.

The Boeing Company (NYSE:BA) has improved its operations and cost management, enhancing profitability as demand for new, fuel-efficient aircraft grows. With a projected need for over 41,000 new airplanes worth about $7 trillion in the next 20 years and a potential return of shareholder value through dividends and buybacks, The Boeing Company (NYSE:BA) is well-placed for long-term growth and investor appeal.