Boeing: Aiming at Mars
11/09/2016 7:00 am EST
The recommended stock is known for manufacturing commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide, notes Briton Ryle, editor of The Wealth Advisory.
And now, Boeing (BA) is aiming for the stars — literally. The company recently outlined its goals to be a key player in the push to send humans to Mars. And it might actually end up beating SpaceX to the punch.
The company has beat expectations three of the past four quarters. At the start of 2016, Boeing’s backlog stood at 5,795 planes.
That’s seven and a half years of production. It delivered a record 762 commercial planes in 2015.
The company has averaged over $78 billion per year in commercial airplane sales over the past five years and now controls around 45% of a market that’s expected to generate $5.2 trillion in revenue over the next two decades.
That astronomical backlog has fallen some, but not because orders have slowed. The company is running more efficiently and putting out 200 airliners a quarter now!
And to top that off, it just got the green light from the U.S. government to sell over $7 billion worth of fighter jets to Qatar and Kuwait.
After beating earnings estimates by almost $1 per share and topping revenue estimates by $260 million, BA management impressed investors even more by issuing increased guidance for the full year.
The company expects to earn almost $1 per share more this year than previously expected on the back of revenues half a billion dollars higher than it estimated at the last report.
This is the kind of stock you want to pick up on any dips. I’m maintaining my 12-month target at $185, and that’s still a pretty conservative estimate.
By Briton Ryle, Editor of The Wealth Advisory