Boeing (NYSE:BA) has been a mediocre stock for the past couple of years, declining a little over 1%. The company’s problem 737 Max planes have been a headache for the company and are a key reason why the stock has underperformed.
For a contrarian investors, however, it could be an opportunity to scoop up a stock that could be a good deal. With expectations low for the company now that production of the 737’s is temporarily suspended, analysts aren’t going to be expecting much from the company, and that could make an earnings or revenue surprise a bit more likely.
At a forward price-to-earnings ratio of just under 21, Boeing may not be a bad value buy for investors who are looking for a stock that isn’t trading near its high.
Boeing is near its 52-week low of $319.55 and it has fallen more than 10% in just three months. One reason investors may want to consider the stock is for its dividend, which currently yields 2.5%.
Despite the challenges the company has faced, Boeing has recorded a profit in three of its last four quarters and over the trailing 12 months its net income is $3.8 billion. And with free cash flow still in the black, the company’s business has proven to be resilient.
Bad press can hurt a stock, but that doesn’t mean that Boeing is in trouble for the long term. Although the problems surrounding the 737s aren’t likely to go away anytime soon, the stock can still recover from them.
