Shares of Boeing, the largest aircraft manufacturer in the world, were trading at the beginning of 2019 at more than 340 dollars, and are currently priced at 338.16 dollars. The share price rose by about $10 in the Dow Jones Industrial index in the United States, and the company at the beginning of January, has about half of the index’s gains of 156 points. This comes with the company’s announcement of profits exceeding expectations in the fourth quarter of 2018, with the company delivering 238 commercial aircraft in the last quarter. Boeing’s shares are usually the most influential in the Dow Jones Industrial Average.
The company also announced at the end of 2018 the quantities delivered for the New Year, which surpassed in terms of figures the company’s direct competitor, Airbus. Boeing will remain the world’s first aircraft maker. The company delivered a total of 806 aircrafts last year, surpassing its record in 2017 when it sold 763 aircrafts. Net aircraft orders in commercial revenue in 2018 rose to $143.8 billion.
Given the trade tensions between the world’s two largest economies (the United States and China), many financial, commercial and industrial sectors around the world are affected. However, Boeing has not been affected by this concern surrounding the global markets, as it is natural that demand for air travel continues to increase worldwide. In another context, while the company threatened to “Leon Air” to withdraw billions of dollars from the company’s orders, the shares of Boeing continue to grow. Investors seem to prefer to support the giant airline company instead of Leon Air, which was banned in the United States and the European Union due to regulatory and safety concerns.
Leading stock market analysts and global network analysts like CNBC expect Boeing to grow by an astonishing 50 percent over the next three years. They believe that the company may not be primarily technical but has a very interesting service activity, which is a major incentive for investors. The company’s share price has been continously growing since the beginning of 2018, until it reached the price of 400 dollars in October. Even after the large sell-off at the end of the year and the distribution of profits before the holiday season, the stock recovered as has started trading this year at about $338.
Boeing is one of the companies that have always sought to satisfy all of its partners, both clients and investors. This week, the company announced a decision to raise its quarterly profit return to its investors by 20% to $2.055 per share, thereby increasing the share repurchase program to $20 billion. In this way Boeing’s annual earnings per share will be $8.22, making it the best return on all S & P 500 stocks. The decision is a statement by the company of trusting the value of its shares and their trends in the market, and of its confidence in the volume of investors in its shares
In light of the slowdown in the purchase of large aircrafts, especially with the emergence of low-cost airlines, Boeing is trying to increase manufacturing on its own aircrafts and thus can increase revenue by improving the content of each aircraft. Boeing has already signed a deal with French firm Safran to develop APU units. Earlier this year, KLX bought aircraft parts worth $3.2 billion. It would therefore not be surprising to see Boeing take strong steps towards making more equipment for its own aircrafts.