While the Dreamliner has been a nightmare for Boeing, China could be an absolute dream for the company’s bottom line.
That’s because the aerospace giant just upped its long-term forecast for Chinese plane demand, saying the country will now need more than 5,500 aircraft in the next 20 years.
That’s almost $800 billion worth of planes, and that’s just in China alone.
“We project China traffic to grow at nearly 7 percent each year," said Randy Tinseth, the Vice President of Marketing for Boeing Commercial Airplanes, said in a press release.
But is the China news enough reason to get on board Boeing, which has seen its shares rally over 40% this year alone?
The charts say yes.
“Boeing is consolidating well,” says Carter Worth, Chief Market Technician at Oppenheimer. “After another two-to-three weeks of backing and filling, the stock should reassert itself and ‘break out’ above the 2007 tops with which it is contending right now.”
What’s particularly interesting to some investors is the resilience that Boeing shares have shown despite the tough tape. In the past month, the Dow has lost 5 percent, but Boeing shares are effectively flat over that time.
So do the fundamentals back up the pretty charts?
Click the video above to find out.