Why is Boeing stock performing poorly despite record orders?

Boeing's stock is affected by past design issues, the pandemic's impact on air travel, and current industry anemic financial recovery, despite a large order backlog.

What is Boeing's future outlook for jet orders?

Airlines are projected to need 43,600 new passenger jets by 2044, reflecting a strong long-term demand for Boeing aircraft.

What is Boeing's current backlog value?

Boeing's backlog of unfilled plane orders reached a record $636 billion as of the third quarter.

Home / Business and Economy / Boeing Stock: Grounded Despite Record Orders?

Boeing Stock: Grounded Despite Record Orders?

6 Dec

•

Summary

Boeing stock trades below two and five-year levels.
Unfilled orders backlog reached a record $636 billion.
Airlines anticipate needing 43,600 new jets by 2044.

Boeing Stock: Grounded Despite Record Orders?

Boeing's stock performance has been significantly impacted by recent challenges, trading below its value from two and even five years ago. This decline contrasts with broader market gains and follows design issues with new aircraft and the lingering effects of the COVID-19 pandemic on the airline industry, which is still experiencing anemic revenue compared to pre-pandemic levels.

Despite these headwinds, Boeing maintains a substantial future outlook, evidenced by a record-breaking backlog of $636 billion in unfilled plane orders as of the third quarter. This indicates strong anticipated demand, with projections suggesting airlines will require 43,600 new passenger jets by 2044.

Analysts remain cautiously optimistic, with a consensus price target suggesting over 30% upside from the current stock price. While Boeing faces a challenging present, its long-term prospects, supported by a robust order book and projected industry growth, suggest the company is far from doomed.