Recent news surrounding the potential for more issues with Boeing Co.’s (NYSE:BA) 737 max planes has somewhat halted the rebound trade in this stock. A recent dip in Boeing’s stock price may entice some investors who believe in the long-term potential of this plane maker to not only survive this ordeal (as well as the impact of the coronavirus pandemic), but thrive long-term, to pick up shares on weakness right now.
That said, I do think this is a stock that deserves a place on investor watch lists right now rather than a portfolio position. I think there’s too much uncertainty on the horizon with respects to the major headwinds facing this stock right now. The extent to which we’ll see additional 737 max problems arise remains to be seen. Though the green light has been given by various key agencies around the world, if we see another major grounding take place, Boeing’s stock price is at risk of a significant hit in the near-term.
Additionally, it’s unclear to what extent travel will fully rebound to pre-pandemic levels once this world returns to a normal (or as close to normal as we’ve seen in the past). If airplane orders take a hit, and Boeing’s backlog cannot get replenished as it has in the past, we could see room for further downside on the horizon. I’ve got this stock on my watch list, and I would recommend investors do the same right now.
Invest wisely, my friends.
