Boeing Company (BA:NYSE)
Price at Preparation: $159.84 (October 21st, 2024)

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What they do

The Boeing Company (BA:NYSE) is an aerospace company which engages in the manufacture of commercial jetliners and defense, space and security systems. It operates through the following segments:

  • Commercial Airplanes: include the development, production, and market of commercial jet aircraft and provides fleet support services, principally to the commercial airline industry worldwide.
  • Defense, Space and Security: refers to the research, development, production and modification of manned and unmanned military aircraft and weapons systems for global strike, including fighter and combat rotorcraft aircraft and missile systems; global mobility, including tanker, rotorcraft and tilt-rotor aircraft; and airborne surveillance and reconnaissance, including command and control, battle management and airborne anti-submarine aircraft.
  • Global Services: provides services to commercial and defense customers.
  • Boeing Capital: ensures that Boeing customers have the financing they need to buy and take delivery of their Boeing product and manage overall financing exposure.

Welcome back to Theta Bandits Top Pick Tuesday, where we strive to bring you relevant content by searching the markets for new ideas and what could be a new potential winner in any portfolio.

The Boeing Company (BA:NYSE) has been in the news a lot in the past few months with public issues ranging from bringing in a new CEO, to their Starliner failure by not being able to return to earth safely with the crew aboard, to finally dealing with strike action hampering production. If you stopped reading here, I would not blame you, but let’s keep digging!

Let’s focus on the business with the announcement of a 10% workforce reduction, as well as a plan to raise more money, plus today saw a tentative deal pending to end the strike action, which should put more money back into the budget and gets the production line running again. These are all positive signs which allowed the stock price to jump +3.12% today to close at $159.84 USD.

Given the above information, analyst street consensus is a little divided at the moment with 17 Buys, 8 Holds, 4 Sells and 12-Month Price Targets (PT) as follows:

  • Low: $109.00 USD (-31.81%)
  • Average: $195.13 USD (+22.08%)
  • High: $275.00 USD (+72.05%)

Plan

As usual, find the chart below with following colors:

  • Blue: 52-week high.
  • Red: 52-week low.
  • Green: 12 Month PTs (high / avg / low).
  • Orange: Support/resistance lines.
  • Yellow: Our plan.

In the chart below, we have blocked with two orange lines a previous trading range after the drop from the 52-week high. Notice that the price action broke below that trading range and has rebounded close to possibly re-enter that trading range. The yellow circle shows todays 3% move as well as a possible pattern for future price action. Since this is a trading range, as we always recommend – stop-losses should be set and used to mitigate risk on the position’s move as per your risk tolerance. Use the orange support/resistance lines to update these as the price moves through the levels. Suggested targets based on the support/resistance lines mentioned would be to secure profit at $171.67 USD, $177.50 USD and $185.51 USD. Any profit being held after that price can be used to hit the 12-month avg PT of $195.13 USD or above if there is a breakout.

There is another risk to point out before we jump into the trade. Note that on October 23rd, 2024, The Boeing Company will report their quarterly Earnings Report (ER). If you are familiar with our previous articles, you are aware that ER’s have the potential to cause volatility, which could be either beneficial or detrimental to a position. A potential strategy is to wait for the news of the ER results and use the reaction to analyze if the results meet expectations to enter the trade or not.

This is only one method how to trade this movement. We discuss other potential methods to attack this stock through our discord server and we will discuss this trade live IF you sign up to attend our weekly Theta Bandits Webinar – When we trade together, we learn together!

RISKS

The goal is to grow capital by securing profits along the way and limiting losses. Make sure to plan to trade within your risk tolerance, allowing time for success while updating limits and exit points to mitigate risk.

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do 👇

Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.

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