Boeing (NYSE:BA) is an American staple that requires little introduction.
The company is still gripping with one of the most damaging controversies in its history, but the stock is showing signs of recovery. Its shares have dropped 18% year-over-year as of close on February 21, but the stock has climbed 6% over the past month.
The company is still facing legal trouble in the fallout of two devastating crashes involving its 737 MAX 8. In February, Boeing submitted its initial plan for resolving the MAX 737 wiring concerns. Management is confident that the modifications that may be needed on the MAX 8 will not change its estimate for the plane returning to service by the middle of 2020.
In 2019, Boeing reported its first annual loss in more than two decades. This was due to mounting losses that have plagued the company as it wrestles with this crisis. Its tally from the tragedies has climbed to over $19 billion.
Boeing is already battling high levels of debt which operating cash flow has struggled to keep up with. The fallout from these accidents will linger for years to come.
So, is it worth it to add Boeing at its current price? The stock is trading close to its 52-week low at the time of this writing. Boeing is a case of "too big to fail", but the stock could see darker days especially as broader turbulence returns to global markets due to fears surrounding the COVID-19 outbreak.
Investors should be greedy here and await a more attractive entry point.
