Does Boeing Belong in Your Portfolio?

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With shares of Boeing (NYSE:BA) trading around $136, is BA an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Boeing is an aerospace company. It focuses primarily on engineering, information technology, research and development, test and evaluation, technology strategy development, environmental remediation management, and intellectual property management. The company operates in five segments: Commercial Airplanes, Boeing Military Aircraft, Network & Space Systems, Global Services & Support, and Boeing Capital Corp.

Boeing vice president and general manager Jack Jones told Reuters on Thursday that the company is close to hitting its production target of 10 787 Dreamliner jets pet month, which would be the fastest build rate of any airplane Boeing has produced to date. Boeing delivered 54 jets through November and, if it hits its target, could break 60 for the year despite a three-month production delay due to battery issues with the jet. Boeing is focusing an enormous amount of attention on its commercial division in light of waning government business for its defense division and waxing demand for commercial jets from around the world. The 10 plane production target is just a stepping stone to a target of 12 planes per month by mid-2016, and of 14 per month by about 2019. Boeing estimates that between 2013 and 2032, the world will demand 35,280 airplanes valued at $4.84 trillion. Most of this demand is expected to come from Asia Pacific ($1.89 trillion, or about 39 percent of total) and Europe ($1 trillion, or about 20 percent of total).

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