Boeing's Shift From Military To Industrial Welcomed By Investors

Boeing (BA), the leading US commercial aircraft manufacturer, reported impressive earnings in its third quarter's earnings release on October 24. The company topped the earnings estimates. What has recently gained investors' attention is the company's plan to gradually shift its resources from its Defense segment to its Commercial segment. In an environment where the future of US military spending remains ambiguous, investors have appreciated this decision. Not only that, investors are also excited about the production increases that the company has recently announced, in order to tackle its backlog. Boeing's book/bill ratio has improved and the stock has a tendency to move higher with an improving book/bill ratio.

The stock pays a healthy dividend of 2.51%. The dividend has been on the rise during the last five years. The dividend has risen by 4.6% in the last five years. The decision to cut down defense jobs has sent a bullish signal to the market. The bullish and bearish targets for the stock price are $100 and $68, respectively. The stock's earnings are expected to grow by 12% per annum for the next five years. Most of the growth hinges upon the ramp-up in production, as planned by Boeing. Find more