Investing in the stock market can be a daunting task for the inexperienced investor, but if done correctly, can result in huge financial gains. When it comes to investing, one of the most popular stocks to consider is Boeing Co. Not only is Boeing Co a well-established blue-chip stock that has been around for over a century, but it also offers exceptional value for investors looking for a long-term investment.
In this article, we will discuss the top 5 reasons to invest in Boeing Co stock right now. From the company’s impressive financial performance to its industry-leading products and services, there are many reasons why investors should consider adding Boeing Co to their portfolio. With a strong commitment to innovation, quality, and customer service, Boeing Co is well-positioned to continue to deliver exceptional returns for many years to come.
1) The Boeing Co Story & History
Looking back, it’s easy to see why the Boeing Co has become such a powerhouse in the aviation industry. Boeing Co was founded by aviation pioneer William E. Boeing, born in Detroit, Michigan in 1881. Beginning his aviation career as a pilot for the Navy’s Hydrographic Office, Boeing was inspired to pursue aircraft engineering after a visit to an aviation exhibition in New York City in 1909. Boeing earned his pilot’s license in 1911, setting a record for the longest flight ever made at the time.
After a brief stint working for the Army Signal Corps, Boeing went on to found Pacific Aero Products Company (PAPCO) in 1916, which would eventually become the Boeing Company. Boeing’s first commercial airplane, the Boeing Model 1, was introduced in 1928. The Model 1 was designed primarily as a crop dusting plane, but was also used as a passenger plane.
2) Financial Performance
Although Boeing’s core business of commercial airplanes can be a cyclical business, the company has done an excellent job in consistently generating strong and steady financial results over the years. In fact, in the past 10 years, Boeing has posted only 2 annual losses, while earning EPS above $13 in 8 out of 10 years. As a result, Boeing’s stock price has increased at an annualized rate of 14% over the past decade.
While the company’s financial performance is certainly impressive, one of the main reasons why investors should consider buying Boeing stock right now is that the company’s earnings are expected to grow at a strong pace over the next several years. In fact, consensus estimates call for Boeing to grow earnings per share at an average rate of around 10% annually over the next 3 years. As such, many analysts are projecting strong future returns from Boeing stock.
3) Industry-Leading Products & Services
In addition to its strong financial performance, Boeing Co has also become a leader in its industry by providing high-quality products and services. For example, Boeing’s large commercial airplanes, such as the Boeing 737, 747, 787, and 777 have become standard in commercial aviation, with over 12,000 Boeing airplanes currently in operation. Boeing’s commercial airplanes are also known for their exceptional safety record, with the 737 and 777 models ranking as being among the safest airplanes ever built.
Boeing’s strong commitment to innovation and quality is also evident in its space and defense businesses, where Boeing and its partners have developed the world’s most advanced commercial and military satellites and rockets. Moreover, Boeing’s defense business has also benefited from increased demand for military aircraft and equipment as geopolitical tensions around the world have increased. Considering Boeing’s industry-leading products and services and growing demand, many investors believe that Boeing stock offers superior value compared to other aerospace stocks.
4) A Strong Commitment to Innovation, Quality, & Customer Service
Another major reason why investors should consider Boeing stock is that the company has a strong commitment to innovation, quality, and customer service. In fact, Boeing built its reputation as an industry leader by setting the highest standards for product quality and customer service. In the early days of Boeing’s commercial aircraft business, the company made a promise to its customers that the first 737 aircraft would fly exactly 3 months after the order was placed. Unfortunately, Boeing’s manufacturing of the 737s ran into unexpected delays and the first 737 was delivered about 5 months behind schedule. Boeing’s customers were outraged, and asked Boeing to break its contract and refund their money.
However, Boeing CEO William Allen allowed the orders to remain and Boeing compensated customers for the inconvenience by giving them first-priority status for delivery. This bold move helped Boeing to gain the trust of its customers and cement its reputation as a top-quality aircraft manufacturer.
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Summary & Conclusion
Boeing Co has become a leader in the commercial airplane industry over the past century by offering high-quality products, strong customer service, and a strong commitment to innovation. From its large commercial airplanes, such as the Boeing 737, 747, 787, and 777, to its space and defense businesses, Boeing’s products have become standard in commercial aviation. Moreover, Boeing’s products are also known for their exceptional safety record. Looking ahead, Boeing’s strong financial performance, industry-leading products and services, and commitment to innovation, quality, and customer service make it well-positioned to continue to deliver strong returns for shareholders over the long term.