Boeing Stock Price Moves 8.35% In June – Time to Buy BA Stock?

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Boeing (BA) stock ended the last trading session at $237.35, marking a -0.78% change for the week. This Boeing price surpassed the S&P 500’s daily loss of -1.31%.

Following a week-long price swing, Boeing price gained 8.35% on the open of trade on Monday, breaking even from last month’s price slump and outpacing the Aerospace sector’s gain of 4.96%.

The aviation industry has been hard hit by the global pandemic, with customers no longer taking flights. Investors have moved on to other sectors, with tech stocks performing remarkably well. Big Tech like Apple and Amazon grew 80% and 74% in 2020, while the wider tech market ended the year by 14%.

The aviation sector is just picking itself from the mud as the world grapples with the spread of the virus. Boeing, much like other airplane builders, has seen its revenue dry up and the sector stalling. Alongside this, regulatory action on its 737 MAX for the past two years has negatively impacted the Boeing price action.

But it seems the airplane builder is gradually stepping out of the woods as the world resumes activities in a post-pandemic era.

If you are wondering if this might be the right time to buy Boeing stock at a low price, this Boeing price article will take a closer look at the company’s future potential and the current technical data of the stock to see if it is a good buy or not.

BA Stock – What Are Analysts Saying?

Boeing price recovery path has not been smooth for the last two years. Starting with the March 2019 crash of the Ethiopian Airline’s Boeing 737 Max, Boeing price fell from an all-time high (ATH) of $430.30 to $323.83, suffering a 25% decline in Dec. 2019.

Boeing price chart June 19

Following the commencement of the global restriction of international flights, Boeing price fell further to a new five-year low to $95.01 on March 2020 as the pandemic ravaged the world.

However, in Nov. 2020, Boeing price saw a strong recovery from its $95.01 valuation following a Federal Aviation Administration (FAA) decision to lift the ban on its wide-body 737 MAX jets. A further announcement by the World Health Organization (WHO) of a mass vaccination program saw Boeing price surge 125% to $209.40.

Boeing price has risen 7% year-to-date.

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Meanwhile, United Airlines is considering increasing its initial order for 737 Max jets to 250. This has propelled Boeing price to break through the resistance zone of $210.

Southwest Airlines is also keen on some Boeing 737 wide-body jets as the fellow American airline operator has reportedly placed an order for 34 of the once-embattled airplanes. Ireland’s Ryanair, and others have also ordered for 737 jets.

The influx has seen market analysts point to a buy potential for the Boeing stock as it rose 0.1% to a 2021 ATH of $248.34 on June 10.
However, it has since seen market correction and trades at $237.35.
Market consensus is pointing to a strong recovery for the American multinational, with analysts saying that Boeing would turn profitable and cash-flow positive in the 2022 fiscal year. Analysts are also forecasting a strong revenue growth that will exceed 2019 levels by the end of this year.

Boeing Stock Price – Technical And Fundamental Analysis

The Boeing Group noted in its Q1 earnings call that 2019 passenger traffic would be attained earliest by 2023. It also reiterated that the recovery in global business activities would enable them to turn a positive cash flow by 2022.

Following this, S&P Capital IQ Data sees Boeing’s revenue growing by 37% and 12% to $79.8 billion and $89.5 billion for 2021 and 2022, respectively.

Meanwhile, Boeing paid $165.17 in 2020, just shy of the industry’s $169.05 and S&P 500 of $203.40. This could pick up if global commercial activities return to normal.

At the moment of writing, the Boeing price signal is mixed with the 20-day moving average (MA) above the price action at $246.48. Its relative strength index (RSI) stands at a healthy 42.53, meaning investors are piling up on BA stock. Meanwhile, its long-term outlook is promising, with the 200-day MA indicator trading below $212.34, indicating a bull market.

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About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.