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A Ryanair Boeing 737 aircraft is reflected in a window as it prepares to land at London Gatwick Airport.
Ben Stansall / AFP via Getty Images
Boeing
stock had a miserable September. October isn’t starting out so hot either. Is the drop an opportunity for investors?
Shares of the commercial aerospace giant only rose three out of 21 trading days in September. Boeing ticker: BA) stock dropped more than 14% this past month, while the
S&P 500
dropped about 5%.
It’s a big drop. Nothing really bad happened to the business though. In September, the company took in some orders from a Vietnamese airline. Boeing also said that demand for aircraft in China is expected to rise a little faster than expected. Another positive.
The market deserves some of the blame. It wasn’t only Boeing.
Airbus
‘ (EADSY) U.S.-listed American depositary receipts fell about 9%.
RTX
(RTX) stock fell about 16%, although it had a problem with its geared turbofan engine that powers some A320 family jets. The engine is proving less reliable than initially hoped.
“The magnitude and consistency of Boeing’s decline is striking but the fact that the stock fell is not,” wrote J.P. Morgan analyst Seth Seifman in a Sunday report. He isn’t surprised by the drop. “The emergence of headwinds to Q3 earnings and cash flow, the slow pace of 737 deliveries, and expected pressure on 2024 free cash flow expectations.”
Wall Street projects a third-quarter per-share loss of about $2.66 and free cash flow of just $100…
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