How to Buy Boeing Stock Now, Price Forecast and Dividend Guide
Boeing stock (BA) may not be an investor’s first choice, as it was hit hard by the covid-19 pandemic and the scandal over its 737 Max aircraft before that. However, the fact that Boeing was one of the stocks that suffered the most from the pandemic also means that it will make the most progress as social and economic life returns to normal.
So, as the vaccines spread and the world sees the end of the pandemic, now could be a great time to buy Boeing stocks. In this analysis, we’ll look at Boeing’s profile, as well as its news and recent stock performance. More importantly, we’ll look at its future prospects from several angles to determine if buying Boeing stock is a wise investment.
Boeing is best known to the general public for its commercial airplanes, which are a favourite of many airlines. However, this business was hit hard by the covid-19 pandemic. This halted almost all international travel, and thus demand for airplanes.
But before that, Boeing share price was affected in 2018 and 2019 by a scandal about its 737 max model, after 2 fatal accidents. However, manufacturing airplanes is not Boeing’s only source of revenue. It is not even the most critical source of income. In fact, Boeing’s business is broken down as follows in terms of revenue:
- Defense, space and security: 47%.
- Commercial airplanes: 28%
- Global services: 25%.
While Boeing is an aerospace and defense conglomerate, it is often judged by investors solely based on its most visible business, manufacturing airplanes. As such, it is obvious that the market’s punishment for the stock has been far too severe.
Finally, it should be noted that Boeing’s main competitor in commercial aircraft is Airbus. As far as defense activities are concerned, its biggest competitor is Lockheed Martin.
Boeing Stock Price History
Boeing stock is listed on the NYSE under the stock code “BA”. The company’s market capitalization is currently $130 billion. Boeing stock is a component of most U.S. stock indexes, including the S&P 500 and the Dow Jones. In terms of its stock market history, Boeing stock has a history dating back to 1980. However, we focus on the Boeing stock history in last 5 years below to stay relevant.
The weekly chart of Boeing stock NYSE shows that the stock has displayed a powerful uptrend between September 2016, when the stock was trading around $130, and an all-time high of $446 in February 2019. Boeing stock thus posted a gain of over 240% in two and a half years.
Then, a real downward descent began for Boeing, which then marked a low of $89 just over a year later, in March 2020, in the face of the covid-19 pandemic. Boeing’s stock value was divided by 5 during this period.
However, Boeing shares was then able to come back strongly, reaching a peak of $278 in March 2021, after having seen its value triple in one year. However, Boeing stock still has solid upside potential despite this sharp rise for many reasons that we’ll discuss later in this guide.
Why Should I Invest in BA Stock?
To begin our assessment of Boeing stock projections and potential, we will look at several concrete fundamental factors below.
Boeing 737 Max Setbacks Seem Finally Forgotten
After the 737 Max aircraft’s return to service last year, February 2021 was the first month in which 737 Max orders exceeded cancellations, and that momentum continued in subsequent months.
While the level of orders is still lower than before the 737 Max was grounded, the numbers clearly show that the company’s 737 Max woes are definitely behind it.
Boeing, One of the Best Stocks to Play the End of the Pandemic
There is a popular strategy among investors since the release of covid-19 vaccines: buy the stocks that suffered the most from the pandemic because those are the ones most likely to make substantial gains as the economy reopens and the pandemic ends.
But the tourism sector and airlines have been hit the hardest, leaving Boeing with no business for its commercial aircraft. So, as the world looks toward the end of the pandemic with vaccines, Boeing is one of the best stocks to implement this re-opening strategy.
Boeing Is Not Just an Airplane Manufacturer
Finally, one thing people tend to forget about Boeing is that commercial airplanes don’t even account for a third of its revenue. In fact, nearly half of Boeing’s revenue comes from its defense and aerospace business.
These activities are relatively immune to economic crises. Moreover, government spending on defense will likely continue to increase over the next few years. This should further consolidate Boeing’s most significant revenue stream.
Boeing Forecast: Will the Stock Go Up?
Now that we’ve established that Boeing stock’s fundamentals are currently strong, let’s turn our attention below to its future prospects, from a financial perspective, a technical perspective, and an analyst perspective.
Boeing Stock Analyst Forecast
According to TipRanks, there are currently 25 professional analysts following Boeing stock. Twelve of them recommend buying, but there are also 12 who recommend holding. Only one analyst recommends selling.
The average Boeing stock price target posted by these 25 analysts is $267, which represents a potential upside of more than 20% from the current price. Finally, we note that the range of forecasts is from $200 to $311. Thus, even the one analyst who recommends selling does not expect too much of a decline.
Boeing Stock Technical Forecast
In terms of technical context, there are also reasons to buy Boeing stock today. Boeing stock’s rise has been supported by an uptrend line since June.
With Boeing stock price today is currently near this trend line, a new uptrend phase may be imminent. However, Boeing stock is also facing important resistances, with the 50, 100 and 200 day moving averages at $229, $235 and $228 respectively. Thus, we would prefer to wait for a break above $235 before buying.
As far as targets are concerned, the March 16, 2021 peak around $280 and then the psychological threshold of $300 are the first thresholds to target. Finally, a break below the $200 mark would begin to reverse Boeing’s bullish daily chart pattern.
Where to Buy BA Boeing Stock
It is effortless to open an account with an online broker and buy Boeing shares. But it is much more challenging to choose the right broker. Indeed, there are many brokers on the market, so it can be difficult to decided which one to choose.
Among the reliable brokers on the market, ZFX is an ideal intermediary. This broker was born in 2018, which makes it a fairly new broker. It is regulated by the FCA, making it a regulated and secure trading platform.
The trading platform offered by ZFX is the famous MT4 platform, which is a favorite of millions of traders worldwide, for its advanced features in terms of analysis and automatic trading.Finally, it should be noted that ZFX is not limited to stocks, since it is also possible to invest in forex, commodities, or indices.
How to Buy Boeing Stock Easily
Buying Boeing stock from the broker ZFX is a quick and easy process. In fact, you can open an online account in just a few minutes by following these steps:
- 1. Register with ZFX
- 2. Verify your ZFX account
- 3. Make your first deposit
- 4. Buy Boeing stock
1 – Register with ZFX
This first step is done directly on the ZFX homepage, where you will have to click on the “open an account” button. This will bring up a registration form. Enter the required details as shown in the image below.
Note that you will need to verify your phone number via an SMS procedure. Immediately after this step, you will be able to download the MT4 platform.
2 – Make your First Deposit
You will then need to make a deposit. You will then use these funds to buy Boeing stock. To get started, you will need to click on the “Make deposit” button on the screen displayed immediately after registration.
You will need to choose a payment method. We will use the most common payment method as an example, i.e. credit card. You will have to enter your credit card information before the final validation of the payment.
3 – Account Verification
The last step before you can buy BA stock is to verify your account. For this, you will need to send supporting documents as you can see below.
4 – Trade Boeing Stock
Once ZFX has validated your documents, you are ready to buy Boeing stock. Simply login to the MT4 platform using the username and password that ZFX sent to you. Once you access the platform, you can find BA shares under its symbol “BA”, and invest as you wish.
Bottom Line: Should I Buy Boeing Stock Today?
Boeing stock definitely has an attractive profile. It still has a long way to reverse the pandemic’s impact, but it has already proven that the turnaround is underway. Indeed, the 737 Max setbacks are now forgotten by investors and customers alike. And as far as the impact of the pandemic is concerned, the development of vaccines gives hope that air travel will return to normal in the coming months. This should thus fill Boeings’ order book.
But we should also remember that defense accounts for nearly half of Boeing’s revenue, and unlike its aircraft manufacturing business, its defense business has never faltered.
In this guide, we’ve also shown that the financial forecasts and technical outlook point to a bullish future for Boeing stocks prices. Finally, the majority of professional analysts who follow Boeing stock advise buying, which confirms that Boeing stock is an attractive investment.
If you, too, would like to take advantage of this long-term buying opportunity, we recommend that you immediately check out the broker ZFX. It is a regulated broker with some of the lowest fees on the market, and we think it is an ideal place to buy Boeing stock.