Boeing stock topped Dow index, more upside is ahead
Boeing stock price has been reversing losses at a sharp pace that it has faced in the past two years, thanks to MAX 737 return along with coronavirus vaccine discovery.
The rally accelerated after Pfizer announced that their coronavirus vaccine has more than 90% effectiveness in treating infections.
The shares of the planemaker soared almost 30% so far this month, with expectations for more acceleration in the days ahead. Despite the latest gains, Boeing stock price is still down almost 50% in the past twelve months.
Market analysts are seeing the dip as a buying opportunity for long-term investors.
Boeing stock is presenting a buying opportunity
The shares of the largest passenger planemaker are currently trading around $190, down significantly from a 52-weeks high of $380 and an all-time high of $420.
Boeing stock price fell only due to pandemic related worries and regulatory concerns over the grounded 737 MAX jets.
Fortunately, the coronavirus vaccine launch has substantially changed the future fundamentals of the airline industry as investors and market analysts are now looking forward to recovery.
“Everybody’s looking so far forward right now,” Bloomberg Intelligence analyst George Ferguson says even as the planemaker must contend with a challenging outlook and a balance sheet weighed by $61B of debt.”
On the other hand, the Federal Aviation Administration is lifting restrictions on the 737 MAX as early as Nov. 18. Boeing has grounded 737 MAX jets after its two planes crashed in 2018.
Boeing stock topped Dow index
Boeing was the worst performer of Dow Jones Industrial Average in the past two quarters, but shares of the largest planemaker outperformed other Dow stocks this month.
The market analysts believe investors would buy Boeing shares amid vaccine hopes and the potential recovery in the airline industry. The return of 737 MAX is among the biggest catalysts for the planemaker.