Boeing (NYSE:BA) stock dropped 1.54% on April 3. Shares are still up 21% in 2019 so far. Boeing was thrown into turmoil after the tragic crash of Ethiopia Airlines Flight 302, which claimed the lives of all 157 passengers onboard.
Early results in the investigation into the crash have uncovered similarities between this and the crash of Lion Air Flight 610.
Issues with the anti-stall software on the Boeing 737 MAX 8 sparked an international push to ground the aircraft until the investigation unearthed the problem. Boeing has responded with a software fix, but reports indicate that this process will take several weeks.
The company is set to release more hard data on the results of the investigation in the coming weeks and has urged against overreaction.
Accounting for the financial damage is tricky at this early stage. So far, only Indonesia has cancelled a $4.9-billion order for 50 737 MAX planes.
The biggest danger is losing ground against its European rival Airbus SE, which has a long waiting list for the Airbus A320. Still, Boeing remains in a strong financial position after a very profitable last two years. It is well-positioned to weather the headwinds generated by this crisis.
The stock has dropped to the mid-to-high end of its 52-week range. It last boasted an RSI of 48, which puts it in neutral territory right now.
Investors eager to buy should consider waiting out for more details in the investigation. Boeing has not fallen far enough to be considered an automatic buy today.
