Trade Alert: Time To Bet On Boeing

And two other beaten-down stocks.

Like Boeing, ChatGPT4o has some quality control issues (with spelling in its images).

You Know The Bad News

Shares of Boeing (BA 0.00%↑) were down more than 42%, year-to-date, as of Friday’s close, for good reason. It’s been a poorly-run company for years, with engineering given a backseat to bean counting and diversity initiatives, leading to a decline in quality and an erosion of market share. Then there’s the current strike, and the company’s announcement of job cuts and huge losses it expects to record in the current quarter.

Why Bet On Boeing Now?

So why is this time to bet on Boeing? First of all, because you know the bad news. What shoe is left to drop? Second, because the company has already made a change at the top, and the new CEO is a mechanical engineer by education, not an accountant or an MBA. Third, because it’s unlikely the U.S. government will let Boeing fail. Despite Boeing’s recent problems it still nearly doubled the dollar value of its U.S. Department of Defense contracts in the last fiscal year.

Then there is the technical picture. The stock has hit a longtime trendline, one that goes back to the 1960s.

And according to Chartmill data, the share price has started to consolidate, as indicated by a Set-Up Rating of 6 on a scale of (0-to-10). Boeing reports earnings next week, and since we got a dump of bad news last Friday, and the stock may have bottomed, it seems likely we’ll get a modest positive movement post-earnings.

If that happens, our trade below will give us a profit of about 150%; if we’re wrong, our maximum loss will be 100%.

Details below the paywall, along with the other two beaten-down stocks we’re betting on today (the max gain on the other two trades is closer to 200%).

Our Bullish Bet On Boeing