Boeing (BA) is seeing orders of its 737 Max jet pick up again and is reportedly drawing up plans to sharply boost the output of the narrow-body jet next year. But is Boeing stock a good buy now? Investors should look at the aerospace giant’s fundamentals and the BA stock chart.X
Southwest Airlines (LUV), the top 737 customers, announced on June 8 that it would buy 34 737 Max jets for delivery in 2022. The carrier now has 234 737 Max aircraft on order in total and says it could need up to 500 new aircraft as it expands U.S. service. Boeing saw 73 new aircraft orders in May, outpacing cancellation for the fourth straight month. The orders included 61 737 Max jets and five Dreamliners. But Dreamliner deliveries remained paused as the Federal Aviation Administration reviews Boeing’s quality control checks. Boeing delivered just 17 jets last month. As orders rise Boeing is outlining plans to increase 737 Max output to as many as 42 jets a month in fall 2022, industry sources told Reuters. Boeing has publicly said it plans to boost production steadily from its current lower production rate to hit 31 jets per month in March 2022. The planned output surge comes as travel demand rises. U.S. carriers are opening up new domestic routes and gearing up for a return to expanded international service. Boeing Stock Fundamental AnalysisIt’s been a turbulent two years for Boeing and the company has recorded losses in the last six quarters. Per-share losses narrowed to $1.53 in Q1 from $1.70 a year ago but missed views for $1.17. Revenue fell 10% to $15.22 billion, beating views for $14.4 billion.Boeing didn’t record a charge on the KC-46 tanker program, which has been an earnings headwind for years. But the company booked a $318 million pre-tax charge on the Air Force One program due to Covid-19 and performance issues at a supplier.Cash outflow improved to $3.7 billion from $4.7 billion. Total backlog ticked up to $364 billion from $363 billion in Q4 as Boeing added 76 net commercial airline orders.Boeing’s earnings-per-share growth has averaged 0% over the past three years, according to IBD Stock Checkup. Revenue has contracted by 19% on average over the past three years.