China Is Set to Purchase 200 Boeing Jets. Here's What Investors Should do Next.

Boeing (NYSE: BA) CEO Kelly Ortberg is part of the U.S. delegation in China this week, and his company has reportedly already secured a deal. President Donald Trump announced on May 14 that China has agreed to purchase 200 Boeing 737 jets, as well as to buy U.S. soybeans, oil, liquefied natural gas, and other energy products. The announcement comes on the first day of Trump's bilateral negotiations in Beijing with Chinese President Xi Jinping.

While a deal with Beijing was high on Boeing's priority list, the market didn't give Boeing stock a much-needed boost, falling more than 4% in afternoon trading.

Should the deal with China change how investors view Boeing stock? As with many things in the stock market, the answer is complex.

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Boeing's deal with China and some headwinds

Beijing hasn't given Boeing a major order since 2017, a year that also coincided with a Trump visit. In that deal, China placed an order for 300 aircraft valued at more than $37 billion.

The 200 aircraft in this week's order are worthy of note, but it's also smaller than the deal that Boeing and Ortberg hoped to get. Boeing was seeking a deal for as many as 500 737 MAX jets and 100 wide-body aircraft at the Beijing talks.

There are also other issues unrelated to Beijing that are impacting the stock price. An attorney for Polish Airlines was in U.S. District Court in Seattle this week, alleging that Boeing concealed safety issues with the 737 MAX jet when Polish Airlines committed to leasing 15 of the aircraft in 2016. Regulators grounded the 737 MAX in 2019 after two fatal crashes that were attributed to issues with its Maneuvering Characteristics Augmentation System (MCAS) software. The aircraft returned to service 20 months later following software changes. Polish Airlines sued Boeing in 2021, and a verdict against Boeing could potentially expose the company to litigation from other airlines.

On top of that, Boeing's April delivery numbers didn't meet analysts' expectations. Boeing delivered 47 aircraft in the month, while experts had expected more than 50.

A closer look at Boeing earnings

Boeing's first-quarter earnings showed revenue of $22.21 billion, up 14% from a year ago, but the company posted a net loss of $7 million and a loss per share of $0.20. Operating cash flow was a loss of $179 million, and free cash flow was negative by $1.4 billion.

Even so, Boeing beat analysts' consensus estimates, which had projected a loss of $0.67 per share.

Looking ahead, analysts surveyed by Yahoo! Finance expect Boeing to post revenue in the second quarter of $24.04 billion, which would be an increase of 5.6% from a year ago, and for EPS to be a loss of $0.24 per share versus a loss of $1.24 per share in the second quarter of 2025.

More tellingly, analysts are largely bullish on Boeing stock: 21 of 27 analysts who cover it have "buy" ratings, and only one has a "sell" rating. The consensus price target of $269.52 implies nearly 17% upside as of this writing.

So, Boeing is a complicated company for investors to consider. The deal announced by Trump today is smaller than Boeing officials had hoped, and there are additional legal challenges that threaten the company's profits.

Boeing stock is up 6% so far this year, which is largely in line with the Dow Jones Industrial Average. But a forward price-to-sales ratio of less than 2, plus bullish sentiment from analysts who cover the stock, indicates that Boeing isn't a lost cause. Currently down more than 47% from its highs set before the 737 MAX crashes, Boeing certainly has room to run -- particularly if it can put its legal issues to bed for good.

Investors should continue to monitor Boeing's delivery numbers and the Polish Airlines lawsuit. The China deal, while a positive, isn't enough to meaningfully move Boeing stock.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool has a disclosure policy.