Why Boeing Stock Flew Higher Today

Source The Motley Fool

Boeing (NYSE: BA) stock soared 6.5% through 10:30 a.m. ET Wednesday morning after positive comments from CFO Brian West encouraged buyers to return to the stock.

Speaking at a Bank of America Global Industrials Conference, West delivered positive updates on Boeing's increasing 737 production and stabilizing production numbers of 787s, on cost-cutting, and free cash flow as well.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Boeing's big update

Boeing burned about $14 billion in cash last year, as The Wall Street Journal reports, but West says the company is "off to a good start for" 2025. Management feared Boeing would burn through another $4 billion in the first quarter, but West now says the actual number could be "hundreds of millions of dollars less than anticipated."

This still means Boeing's going to report negative free cash flow, mind you. There seems no chance of that number turning positive in 2025. Still, this is an improvement. Also improved, says West, is the company's airplane production rate, as Boeing stabilizes 787 production at five units per month, and makes "fantastic" progress toward hitting a 38-planes-per-month production rate on its 737 MAX.

Production across all plane types in the first two months of 2025 was 89 units, 35 better than in January and February 2024, and a 65% year-over-year increase.

Is Boeing stock a buy?

Long story short, there's good reason for Boeing's existing shareholders to be happier today. There may not yet be reason enough for new buyers to buy the stock, however.

Consider: Boeing reported $11.8 billion in losses last year, and $14.3 billion in negative free cash flow. Analysts hope the company will (barely) return to profitability this year, but keep on burning cash. Even if West is right, and Boeing burns "hundreds of millions of dollars less than anticipated," it's still probably looking at negative FCF of $4.5 billion or so.

Meanwhile, the company's $130 billion market cap prices it at a steep 32.5 times 2026 earnings... and nearly 20 times projected 2029 earnings. Boeing's not cheap enough to buy, folks. At least not yet.

Should you invest $1,000 in Boeing right now?

Before you buy stock in Boeing, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boeing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $707,481!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of March 18, 2025

Bank of America is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD gains momentum to near $3,650, eyes on US CPI releaseThe Gold price (XAU/USD) gains momentum to near $3,645 during the early Asian session on Thursday.
Author  FXStreet
Sep 11, Thu
The Gold price (XAU/USD) gains momentum to near $3,645 during the early Asian session on Thursday.
placeholder
What to expect from Ethereum in October 2025With broader sentiment worsening, user demand falling across the Ethereum network, and institutional investors pulling back, the coin faces mounting headwinds in October.
Author  Beincrypto
Sep 30, Tue
With broader sentiment worsening, user demand falling across the Ethereum network, and institutional investors pulling back, the coin faces mounting headwinds in October.
placeholder
Powell Speech Preview: Will Fed Chair confirm two more rate cuts?With the US government shutdown causing key data releases to be postponed, Powell's comments could influence the US Dollar's valuation in the near term.
Author  FXStreet
Oct 14, Tue
With the US government shutdown causing key data releases to be postponed, Powell's comments could influence the US Dollar's valuation in the near term.
placeholder
Ethereum Price Slides Below $4,000 Support As Sellers Tighten Their GripETH is now consolidating in a range and might decline further if there is a move below $3,820.
Author  NewsBTC
Oct 17, Fri
ETH is now consolidating in a range and might decline further if there is a move below $3,820.
placeholder
Top 3 Price Prediction: BTC, ETH and XRP struggle as selling pressure mountsBitcoin (BTC) struggles to regain bullish momentum, hovering around $107,800 on Monday after a 5.49% drop last week.
Author  FXStreet
9 hours ago
Bitcoin (BTC) struggles to regain bullish momentum, hovering around $107,800 on Monday after a 5.49% drop last week.
goTop
quote