Jet fuel is one of the biggest expenses involved in running an airline. Cutting back on jet fuel expenses without cutting service, therefore, can be a major win. And aerospace giant Boeing (BA) may have something coming up in the near term that will address the issue quite well. This news, however, proved to be little help at all for investors, as shares dropped nearly 2% in Tuesday afternoon’s trading.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Boeing, working with the Technion-Israel Institute of Technology, is now on the implementation phase of a new aviation fuel known as “electrofuel.” This fuel is made from a combination of green hydrogen and “captured carbon dioxide.” Boeing recently sent Boeing Global President, Dr. Brendan Nelson, to Technion to catch up on the project.
With the implementation phase now at hand, the duo will work toward practical development measures that will make the electrofuel available at competitive costs. Interestingly, Boeing’s connection to Israel goes back several decades, between commercial aircraft sales to El Al (ELALF) and defense sales to the Israeli Air Force. Boeing’s own estimates figure that its relationship to Israel goes back about 75 years.
“A Lot to Be Optimistic About”
Boeing’s fourth quarter earnings report, meanwhile, brought with it one serious win: a 57% jump in quarterly sales. Admittedly, some of that was brought about by President Trump’s trade tour, which frequently featured deals for Boeing aircraft as a quick and easy way to shore up trade deficits.
Meanwhile, CEO Kelly Ortberg revealed that there was “…a lot to be optimistic about” going into 2026. However, Ortberg tempered that remark by stating, “At the same time, with progress comes expectations, and our customers and stakeholders are going to expect more from us this year.”
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 39.74% rally in its share price over the past year, the average BA price target of $258.85 per share implies 6.71% upside potential.
