Boeing’s (NYSE: BA) recent run has been nothing short of amazing.
Boeing is on track for its best annual performance since 1978. The stock has soared more than 86% this year, adding about $77 billion in market cap and around 892 points to the Dow.
But as the stock trades at record highs, one technician is warning that Boeing may have soared too far, too fast, and the meteoric run could soon come to a close.
One Miller Tabak analyst says two technical indicators suggest the rally has gotten long in the tooth, with the first being the stock's Relative Strength Index. The index essentially measures the degree to which a stock is overbought.
The Miller analyst also points out that the stock is up almost 90% from its 200-week moving average, a gap that hasn't been so high in the last 20 years.
Another analyst says Boeing is still vulnerable to competition, and airline traffic trends that could hinder its production. This leads the portfolio manager to emphasize that while investors who hold the stock shouldn't necessarily sell Boeing, investors looking to put new money to work should avoid the stock for the time being.
Moreover, of the 28 analysts who cover Boeing, the average rating is overweight with a $289.46 price target, roughly in line with where the stock is currently trading.
Boeing was trading at yet another all-time high on Wednesday at around $295.
Wednesday’s price for Boeing was an all-time record of $295.60, up $5.66, or nearly 2% from Tuesday’s close.
