New Orders Boost Boeing 7% In A Week

According to the heads of the company’s Commercial division, the never-ending stream of problems that have been plaguing Boeing (NYSE: BA) may soon come to an end. To be more specific, in the days leading up to the Farnborough Air Exhibition, the head of Boeing Commercial Airplanes, Stan Deal, stated that he anticipated a successful show that would result in more jet sales.

Delta Air (NYSE: DAL) is likely to place an order with the aviation giant for approximately 100 Max airplanes, and Lufthansa (OTCMKTS: DLAKY) may potentially place an order for another 10 or so huge Boeing freighters. The announcement is expected to be made by the aviation giant.

This could actually strengthen the order backlog, as the company reported on July 12 that it had delivered 121 aircraft in the second quarter, which is a significant increase from the 95 jets that were delivered in the first quarter. In addition, the number of jets delivered by Boeing’s 737 Max increased to 100, from 81 in the first quarter. While this was happening, the number of military aircraft dropped from 41 in the first quarter to 40.

In addition, even before it was made public that the company had received fresh orders, the stock of the company had been performing fairly admirably, with an increase of 7.24 percent over the course of the preceding five trading days.

Despite the recent increase in price, year-to-date (YTD), shares are still trading at a loss of more than 28 percent, while remaining above both the 20-day and the 50-day Simple Moving Averages (SMAs). In the past month, BA’s share price has been moving within the range of $130.09 and $149.74, exhibiting a bullish trend in the short term.

In addition, it would appear that the support levels are situated in the region between $139.06 and $141.59, while the level of resistance can be found at $147.75.

On the other side, market analysts have assigned a strong buy rating to the shares and are projecting that the average price will rise to $215.29 in the next twelve months. This represents a 45.72 percent premium over the current market price of $147.74.

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The problem with the disruption in the supply chain might be a significant shadow over the entire aerospace industry, notwithstanding the encouraging news coming from the management of BA.

When compared to the previous gains, it would appear that investors have a more positive outlook on the stock; nevertheless, Boeing has been experiencing a number of issues as of late, so exercising caution may be the most prudent course of action.