UBS’ Best Stocks In The AI, Growth & Low Rates Era: Top 29 US Stocks

26. The Boeing Company (NYSE:BA)

Number of Hedge Fund Investors In Q2 2024: 42

UBS’ Sector Rating: Neutral

Sector: Industrial

The Boeing Company (NYSE:BA) is an embattled defense and civilian aerospace company. 2024 has been one of the worst on record for the firm as it struggles with production problems with its bread-and-butter airplane manufacturing business and faces off protesting employees. As a result, it’s unsurprising that The Boeing Company’s (NYSE:BA) shares are down 38.7% year to date. October has been an eventful month for the firm. Not only has the FAA announced that it will open a new oversight review into its safety practices, but The Boeing Company’s (NYSE:BA) CFO has also warned that the firm will continue to bleed cash throughout 2024 and 2025. Naturally, this isn’t good news for investors as it restricts the firm’s ability to pay dividends and invest in growth. The Boeing Company (NYSE:BA) is also reportedly considering selling its businesses to raise cash for the turnaround. One such sale of a defense equipment maker has occurred, and a WSJ report suggests that the space division might be next. Cash is crucial for the firm if it’s to avoid a rating downgrade, and plans shared with investors envision as much as $24.3 billion raised through a stock offering.

During the Q3 2024 earnings call, The Boeing Company’s (NYSE:BA) management shared insights into the firm’s affairs:

“We have employees who are thirsty to get back to the iconic company they know, setting the standard for the products that we deliver. So my mission here is pretty straightforward, turn this big ship in the right direction and restore Boeing to the leadership position that we all know and want. Now to do this is going to require changes in four particular areas. And let me introduce them, and I’ll come back and discuss each one. First, we need a fundamental culture change in the company; second, we must stabilize the business; third, we need to improve our execution discipline on new platform commitments across the company; and fourth, while doing the first three, we must build a new future for Boeing.”