As an iconic American aerospace and defense company, Boeing (NYSE:BA) has had its share of ups and downs. BA stock has historically been a good bet in the long term, but timing is essential.
Since Boeing is in a transitional phase and continues to face supply chain issues, cautious optimism is warranted.
Sure, Boeing has helped generations of investors build wealth over time. If the company is currently undergoing major changes, though, it’s fine to adopt a watch-and-wait position.
Besides, value investing means that sometimes, you’ll just have to sit on your hands. After all, you can still keep your finger near the “buy” button, just in case you’d like to invest in Boeing in the near future.
What’s Happening with BA Stock?
BA stock went on an impressive run, from $120 in late September 2022 to $210 recently. Bear in mind, stocks often need to breathe and consolidate after a big run-up.
Perhaps, since the Boeing share price is much closer to its 52-week high than its 52-week low, financial traders can wait for a pullback before making a move.
Another reason to hold off on a share purchase, for now, is that Boeing is in a state of transition.
According to Reuters, Boeing plans to “realign” its financing arm within the company’s commercial airplane unit, while also maintaining “strong coordination” with the company’s treasury segment.
This, Boeing CFO Brian West explains, will help the company to “focus resources on our core work of supporting our customers and their financing needs.”
Reuters also observed that, in November of last year, Boeing “announced a reorganization of its defense unit that halved the number of sub-divisions.”
Boeing Is Dealing with Parts Shortages
Clearly, while it’s still a solid company, Boeing is in a state of flux and the future remains uncertain. Adding to the uncertainty are problems with the supply chain. These problems, West acknowledges, are causing Boeing to face ongoing shortages of essential parts.
“The supply chain continues to have its moments of disruption,” West admitted. Indeed, supply chain delays reportedly caused lags in the production of Boeing’s 787 Dreamliner jets.
787 production can still get back on track, however. West expects that Boeing “intends to deliver all 100 787s in its inventory over the next two years,” Reuters reports.
Furthermore, West assured that Boeing had confidence in cash flow objective of $3 billion to $5 billion for 2023.
What You Can Do Now
Currently, Boeing is undergoing a realignment among its business divisions. Plus, the company is experiencing delays in the production of some of its jets. Yet, at the same time, BA stock recently hovered near its 52-week high.
It’s fine to maintain high conviction in Boeing as a company worth investing in. However, patience is a virtue, and it makes sense to wait for a dip in the Boeing’s share price before taking a long-term position.
On the date of publication, Louis Navellier had a long position in BA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.