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At US$343, Is The Boeing Company (NYSE:BA) A Buy?

Dale Lombardi

Today we’re going to take a look at the well-established The Boeing Company (NYSE:BA). The company’s stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $371.56 at one point, and dropping to the lows of $329.82. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Boeing’s current trading price of $342.79 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Boeing’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Boeing

What is Boeing worth?

Great news for investors – Boeing is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $483.38, but it is currently trading at US$343 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Boeing’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Boeing generate?

NYSE:BA Future Profit September 5th 18

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 36.1% over the next couple of years, the future seems bright for Boeing. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? Since BA is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on BA for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BA. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Boeing. You can find everything you need to know about Boeing in the latest infographic research report. If you are no longer interested in Boeing, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.