TLDR
- Boeing secured a $500 million order from Israel for two KC-46 aerial refueling tankers
- Stock slipped fractionally despite the large contract win on Wednesday afternoon
- Airbus faces a 10-day UK strike in September that could slow wing production
- Boeing currently holds a Strong Buy rating from analysts with 18 Buy and 2 Hold recommendations
- Company has been trending as one of the most searched stocks on financial platforms
Boeing landed a massive $500 million contract from Israel’s defense ministry for two KC-46 aerial refueling tankers. The deal should have been cause for celebration.
Instead, Boeing shares slipped fractionally during Wednesday afternoon trading. Investors seemed unimpressed by the half-billion dollar win.
The Israeli defense ministry plans to purchase the tankers using US military aid money. A ministerial committee must first approve the deal before purchase orders get signed.
Israel already operates four KC-46 tankers in its fleet. The new order will bring the total to six aircraft.
Director General Amir Baram said the additional tankers will boost “long-range strategic capabilities.” The aircraft proved valuable during Israel’s 12-day conflict with Iran in June.
Boeing’s diversified business model spans commercial aircraft and military functions. This flexibility allows the company to find sales opportunities across different markets.
Competitor Faces Production Challenges
Boeing may catch a break from its main rival Airbus. The European manufacturer faces a 10-day strike in September that could disrupt operations.
Thousands of Airbus employees in the United Kingdom plan to strike over contract disputes. These workers build wings for Airbus aircraft.
The strike will likely slow production at minimum. However, Airbus doesn’t expect the short-term disruption to impact full-year delivery targets.
Any advantage Boeing gains from the strike will probably be temporary. Airbus appears confident it can maintain its delivery schedule.
Boeing has struggled to compete with Airbus in recent years. The European company had been gaining market share and threatening Boeing’s long-held dominance.
Strong Analyst Support Continues
Wall Street analysts maintain strong confidence in Boeing stock. The company holds a Strong Buy consensus rating based on recent analyst recommendations.
Eighteen analysts rate Boeing as a Buy while only two recommend Hold positions. No analysts currently rate the stock as a Sell.
Boeing shares have rallied 29.74% over the past year. The average price target of $258.17 implies another 14.78% upside potential.
The stock has returned 2.6% over the past month. This trails the broader S&P 500’s 3.5% gain during the same period.
Boeing belongs to the Aerospace-Defense industry group. This sector has gained just 1.1% over the past month.
Earnings estimates for Boeing have been trending upward. Analysts expect a loss of $0.51 per share for the current quarter, representing a 95.1% improvement from last year.
Full-year consensus estimates call for a loss of $2.31 per share. This would mark an 88.7% improvement from the prior year.
Boeing recently reported quarterly revenues of $22.75 billion. This represented a 34.9% increase from the same period last year.
The company has been trending as one of the most searched stocks on financial platforms. Boeing continues to attract investor attention despite recent share price weakness.
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