Boeing (BA) has emerged as a strong recovery candidate with improving technical momentum and renewed operational optimism. With labor challenges resolved and an increasing focus on ramping up production of its critical 737 and 787 programs, BA appears well-positioned for a recovery in both sentiment and financial performance. After breaking above its 200-day moving average and outperforming the S & P 500, BA is signaling a reversal from a prolonged period of underperformance. After consolidating for much of the past year, BA’s breakout coincides with improving relative strength versus the S & P 500. Momentum has remained positive, suggesting the potential for further upside above the $170-$175 breakout range. From a valuation perspective, Boeing trades at just 1.4 times sales, the lowest among its aerospace peers, reflecting its recent financial struggles. While this discount highlights BA’s poor historical position, it also sets the stage for a turnaround as operational improvements take hold. Key drivers for the recovery include: 737 and 787 Production Ramps: Boeing has resolved previous labor disputes and supply chain issues, enabling it to accelerate deliveries of its 737 MAX and 787 Dreamliner—two core models with significant backlogs. This production ramp-up will drive revenue and margin improvement in 2025 and beyond. Improving Backlog Visibility: Boeing’s commercial aircraft backlog, particularly for narrow-body and long-haul aircraft, reflects strong long-term demand. Airlines are increasing fleet investments to meet rising travel demand post-pandemic, supporting BA’s production outlook. Resilience in Aerospace Demand: The broader aerospace industry continues to benefit from a surge in global air travel, particularly in key markets like Asia-Pacific and the U.S. Boeing stands to gain as it addresses earlier challenges and capitalizes on pent-up demand. The trade With implied volatility rank at 44% options premiums are elevated, which allows us to take a long term investment in BA through options by selling a cash secured put : Sell the Jan 17, 2025 $170 Put for $5.40 This strategy allows you to potentially acquire BA stock at an effective price of $164.60, offering a 4.88% discount to the current price. The maximum reward is $540 per contract, while the risk is the obligation to purchase 100 shares if BA closes below $170 at expiration. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
