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Aerospace and defense icon Boeing (NYSE:BA) is known for building planes and missiles. Yet, in reality Boeing is a highly diversified manufacturing company with a broad array of product lines, a fact that’s underappreciated by some BA stock traders.
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Another feature that not everyone appreciates is just how cheap BA stock really is. The share price was hit hard by the onset of the novel coronavirus and still hasn’t recovered. This means that it’s not too late to get in at a good price.
While the trading community is distracted by the latest initial public offering (IPO) or special purpose acquisition company (SPAC), you have a prime opportunity to invest in a legacy manufacturer with pedigree and staying power.
So, let’s conduct a technical breakdown to see how beaten-down BA stock really is.
A Closer Look at BA Stock
Without a doubt, current BA stock holders would be glad to turn the clock back to January of this year. It was a calmer and more optimistic time in America, and BA shares were trading above $300.
Then the unimaginable happened. The coronavirus crisis came to America, and BA stock tumbled below the $100 level. For a moment, it felt as if the demand for Boeing’s products would never recover.
As we now know in hindsight, the bearish sentiment in March was overblown. BA stock holders have regained some of their losses. However, the road back to $300 is a long and difficult one.
In early October, BA stock is hovering near the $170 level. The key to profiting from this stock is patience. Granted, the demand for airplanes isn’t as robust as it was prior to the pandemic. Yet, as long as Boeing stays busy, there’s a chance that BA could have its breakout moment fairly soon.
Serving the Space Force
On the first day of October, Boeing disclosed an exciting development. Specifically, the company has been tapped to develop a next-generation satellite system for none other than the U.S. Space Force.
Out of three development contracts to help develop satellite communications architecture for the Evolved Strategic SATCOM program, Boeing earned one of those contracts.
The initial development contract for this program is valued at $298 million. The partnership with Boeing has room to evolve as contracts for the full Evolved Strategic SATCOM system are targeted for 2025.
Troy Dawson, the vice president of Boeing Government Satellite Systems, clearly believes that his company is a good fit for this ambitious satellite technology development program.
“By leveraging our expertise in digital engineering and technologies with synergies across both our government and commercial systems, we’re uniquely positioned to deliver solutions needed to address the ever-evolving threats,” Dawson clarified.
A Covid Connection
Hopefully by now, you’re starting to see how diverse Boeing’s products offerings truly are. If you need more convincing, then consider Boeing’s recent contribution to the fight against Covid-19.
Not long ago, Boeing agreed to license its portable ultraviolet wand, which is designed to inactivate viruses and bacteria on airplanes, to Florida-based lighting technology solutions provider Healthe Inc.
As Mike Delaney, who leads Boeing’s Confident Travel Initiative efforts, explained, this ultraviolet wand can disinfect surfaces on airplanes as well as enhance other layers of protection for passengers and crew members.
Furthermore, Healthe Executive Chairman Abe Morris noted the wider applicability of this ultraviolet wand. “This could also benefit schools, hospitals, offices, wherever pathogens go,” Morris observed. Thus, numerous businesses could conceivably add the wand to their sanitation arsenal.
The Bottom Line
It’s fascinating to think about the broad array of products that Boeing is able to manufacture. Yet, it’s equally fascinating to consider how cheap BA stock is, so many months after the onset of Covid-19.
And with Boeing staying so busy, there’s no better time than now to start or add to your position in this legendary American company.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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