A key point recently emerged for aerospace stock Boeing (BA), where it was found that, for the first time since 2018, Boeing landed more orders than Airbus (EADSY), its immediate rival. With orders on the rise, and several major airlines throwing in with Boeing, the idea that Boeing has surpassed its limitations and made its comeback is not out of line. Boeing investors were willing to believe this idea, and gave Boeing shares a fractional boost in Friday afternoon’s trading.
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Reports note that the combination of growing overall orders and growing support from the biggest airlines is coming together to give investors new confidence. Moreover, major industry conversations are starting to gather around Boeing to give it even more potential advantage.
Airlines are looking at Boeing and talking about fleet expansions, fleet renewals, and production capacity issues. This is good news for Boeing; after years of concern about quality, concerns about production, and the like, airlines are talking about Boeing like any other valuable, trusted, regular supplier. And with Boeing on track to get its 737 MAX 7 and 737 MAX 10 jets certified this year, that is one more point in Boeing’s favor when it comes to figuring out where to pick up the next round of jets.
Unexpectedly Supersonic Cargo Jet
Cargo jets do not usually go supersonic. There is not much point in aircraft designed to ferry goods around breaking the sound barrier. But a Boeing 747 cargo jet managed to do just that, even if inadvertently. The story itself may be a bit old, but it helps remind us what Boeing can do, and what it may be able to do down the line.
Way back in December 1991, a Boeing 747 cargo jet developed a failure warning on its inertial navigation systems. The result: the plane went 90 degrees to the right, and went into a steep decline, heading downward between 30 and 35 degrees. The plane lost 10,000 feet of altitude before finally stabilizing at around 22,500 feet. At one point, the plane reached Mach 1.25, which is actually supersonic speed. Other reports suggested the plane never cleared Mach 0.98. Given the plane’s maximum speed was rated at Mach 0.92, however, that still represents a real feat.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 14 Buys, two Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 42.8% rally in its share price over the past year, the average BA price target of $258.85 per share implies 2.44% upside potential.
