Aircraft manufacturer Boeing Co (NYSE:BA) is pumping the breaks on its recent rally.
Boeing's stock has been volatile due to US-China trade tensions, but recent order inflows show strong demand and confidence in Boeing's products. In March, Boeing secured 192 airplane orders worth nearly $22 billion, significantly higher than the previous year's figures, indicating robust market demand. Boeing delivered 41 airplanes in March, maintaining a steady delivery rate, which suggests successful inventory reduction and increased production capabilities.
Boeing has delivered 18 aircraft to nine Chinese airlines so far this year, numbers show. However, they have been told not to accept any further deliveries.
Boeing's shares slid sharply in premarket trading early on Tuesday, after Bloomberg reported that the Chinese government had ordered the country's airlines to stop taking deliveries of new aircraft from the American plane maker amid an escalating trade war between Beijing and Washington.
Boeing gets caught up in the trade war between the world's two largest economies.
China has ordered its airlines not to take any further deliveries of Boeing Co. jets, according to people familiar with the matter. Beijing has also asked that Chinese carriers halt any purchases of aircraft-related equipment and parts from US companies, the people said.
The aerospace industry has seen massive growth, especially in Asia, with Boeing and Airbus dominating. Despite struggles, Boeing shows potential with key wins like the F-47 contract. Boeing's F-47 win is a major step forward, providing revenue stability and opportunities for future growth. The company is addressing operational issues and working on critical programs like the 737. While Boeing faces debt challenges, its future cash flow prospects are strong. With improvements in production and defense contracts, the risk/reward makes Boeing an appealing investment at current levels.
BA stock records year-over-year growth of 56.6% and 85.7% in commercial and defense shipments, respectively, in the first quarter of 2025.
Boeing (BA) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.
Boeing (BA) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
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Recent economic uncertainty has now slowed demand for new airplanes. That, coupled with a midday apparent tariff reprieve, has the stocks of commercial aerospace suppliers including Boeing (BA 12.96%), Howmet Aerospace (HWM 9.92%), and GE Aerospace (GE 10.37%) up more than 8% as of 1:30 p.m.