Long Term Analysis of Boeing Stock

Boeing stocks (BA) have been rising and falling unexpectedly during the past few days. However, analysts believe that they are expected to give the investors a good return when they are at their peak. However, it isn’t as simple as it seems. Although Boeing stocks are looking good, experts say that there could be some risk for investors in the coming days.

Recently, Boeing has sold a product that is claimed to be the ultimate in jet planes, the BA 787 Dreamliner for the first time. The first manufactured BA 787 Dreamliner was sold to Air Nippon Airways, Tokyo, Japan. Boeing is expected to get an order for twelve more 787 dreamliners from Air Nippon Airways in the next six months, and eight more in 2013. In 2013, Boeing is also going to deliver the BA 787 Dreamliner to United Continental. By doing this United Continental will become the first American air carrier to buy the 787 airplane and use it to run commercial flights.

Boeing needs to manufacture ten 787 Dreaminers a month to meet its demand and supply objective. This target is difficult to achieve as the first BA 787 Dreamliner took eight years in the making. Hence, the production of ten 787 dreaminers in one month seems to be a senseless thing. However, Boeing believes that it can meet its target. Analysts believe that the future stock prices of Boeing are expected to rise if Boeing can achieve its target of ten 787s in one month. If Boeing constantly completes this target, then Boeing shares will increase above $90 by the end of 2012. If this keeps up, then Boeing is expected to increase their GDP and hence, attract more investors. According to Jefferies & Co. estimates, the EPS of Boeing will increase by to $6 in Fiscal 2012.

Therefore, as you see, it is very likely that Boeing stocks (BA) can increase by a good margin over the next few months. Investors can get a good return out of it, if they are willing to take the risk. There is a dangerous possibility that Boeing shares could hold up on their current value, which could lead investors to a hefty short-term loss. So, if you believe that the risk is worth taking, then the Boeing shares are waiting for you. However, if you have any doubts, then it’s better for you to hold back for some time.