Welcome to Extreme Investor Network, where we provide cutting-edge analysis and insights for all your investing needs. Today, we’re diving into the recent struggles of aerospace giant Boeing (BA) and exploring whether it’s time to consider a position in this stock.
Boeing has had a rough start to 2024, with a negative year-to-date return of 44%. This underperformance is stark when compared to its peers in the S&P 500 Aerospace and Defense Index, many of which have had a strong year. So, the big question on investors’ minds is when might be the right time to jump back in.
Taking a closer look at the technical charts, we can see that Boeing is approaching long-term trendline support near $147, with significant resistance above at higher levels. The stochastic oscillator is also signaling oversold conditions, hinting at a possible turnaround. However, with an upcoming earnings report that could bring volatility, it might be wise to wait and see how the stock reacts before making a move.
In the short term, the weekly bar chart indicates downside momentum with declining moving averages framing initial resistance near $162. Additionally, the ratio of Boeing versus the S&P 500 Index is at a 24-year low, pointing to sustained underperformance.
Despite these challenges, 60% of fundamental analysts still hold “buy” ratings on Boeing, with an average price target of $197. This suggests that there may be hope for a turnaround, especially if oversold conditions lead to stabilization.
When comparing Boeing to the iShares U.S. Aerospace and Defense ETF (ITA), it becomes clear that Boeing’s underperformance is significant. ITA is making new all-time highs, indicating a bullish trend that could lead to sector outperformance.
At Extreme Investor Network, we recommend staying cautious with Boeing for now and focusing on winners in the sector like GE Aerospace, Lockheed Martin, and RTX Corp. Once Boeing shows signs of support discovery and a potential reversal, then it may be the right time to consider a position.
Remember, investing always carries risks, so it’s essential to do your research and consult with a financial advisor before making any decisions. Stay tuned for more expert insights and analysis on all things investing at Extreme Investor Network.