Is Boeing a Good Investment for the Next Decade?

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As airline companies such as Delta (NYSE:DAL) and United Continental (NYSE:UAL) thrive with more passenger volume, longer flights, and greater expectations, Boeing (NYSE:BA) has also flourished in the process. Over the past five years, Boeing’s stock has increased more than 200 percent, but in gauging the bullish sentiment from its recent shareholder meeting, focusing on both costs and its backlog, investors should feel confident as we look toward the next five years and beyond.

In retrospect, investors of Boeing know that its stock is not tied down to the fundamental performance of any one quarter, which includes the performance of any single aircraft such as the 777 or 787. Instead, Boeing’s outlook is judged by the size of its backlog, which is a reflection of how long the company can operate at full capacity without the addition of new orders.

At the shareholder meeting, Boeing disclosed that its backlog has now reached $441 billion, its highest ever, with nearly 85 percent coming from the commercial side of its operation, which bodes well for airline companies. While the company continues to invest in manufacturing while increasing its scale, the company’s top capacity for 2014 is pretty much a reflection of its top-end revenue guidance for $90.5 billion. Essentially, this means Boeing has enough orders, or business, to continue operating at this level for five years without receiving one new order at its current scale.