Long Term Analysis of Boeing Stock and Share Prices

The Boeing Company is an aerospace and defence corporation which is based in the USA. Founded in 1916, it is soon approaching its centenary and since then it has expanded into multiple businesses covering various fields. Boeing now deals with not only aeroplanes and military units, but also deals in finance with their own lending company, Boeing Capital. This multinational business has had its ups and downs, and the last year can be used as a microcosm of this, making it hard to predict the future for Boeing.

In November 2011 the company struck a plans to close a factory after eighty years, which would involve the loss of over two thousand members of staff. Although not a popular decision, this does show signs of cost controlling and with a high value deal being struck too, this is very good signs for investors.

Since the economic crisis hit its worst, Boeing has managed to steadily recover roughly half of their share price from their highest peak in July 2007. At this point in time they fell from 105 right down to 35. Looking at the last few months, there has been a steady decline on a marginal scale, reducing from 77 down to 69; however there is considerable movement, with many peaks and troughs, meaning that investors may find this a good time to invest as the average price this year has been at slightly above 73.

Boeing currently has a Beta of 1.1 which suggests that it is giving a better return than the market itself, and has set itself a target of hitting a share price of 87 by the end of the year. This alone would be a good return on investment if the company hits this target. Also Boeing is currently putting out a dividend of 1.76 gives it a yield of 2.5% which is not too bad in this climate.

All in all, Boeing seem to be doing very well on the surface, with news reports  of dramatic increases in executive pay as well as annual accounts showing huge amounts of profits being made. The share prices may be falling very slowly in the short term, but long term it does appear to be a good investment. In the last ten years alone, Boeing have had a massive rise, a massive fall, and a steady and assured recovery which leads slightly less risk averse investors to see them as a good bet for the future, even if this is in the long run. Short term, there is probably very little to be made as the trend seems to be stuck in a wave like motion, rising and falling periodically; however the company has set itself targets which show high aspirations and this should not be ignored.