Should I Buy Boeing (BA)? Finance YouTuber Analysis

The analyst believes Boeing is a long-term attractive opportunity due to its substantial backlog and improving manufacturing efficiency, which should lead to higher revenues and cash flow. While currently fairly valued at $215 against a $203 fair value, the momentum is positive. However, he advises waiting until after the upcoming investor update to mitigate risk.

“while Boeing stock does look like an attractive opportunity for long-term investors, I would wait until after the earnings update to make the purchase.”

The YouTuber sold Boeing at a significant loss due to its operational complexity and safety issues, specifically the MCAS system failures. He concluded that he does not trust the leadership or the company's future, and has learned to avoid investing in operationally complex businesses.

“I don't trust the leadership. I don't like how complex the company is, and I just don't think it has a great future. So, I sold the company.”

The YouTuber advises taking profits on Boeing before its earnings report on Wednesday. He suggests that the stock might have been run up ahead of earnings and could fall afterward, emphasizing the importance of not overstaying one's welcome and managing risk.

“go ahead and lock in profits guys because Wednesday coach don't know what they might do they might have ran it up today so they can yank it down Wednesday and have some room to fall”

The YouTuber advises buying Boeing on dips, ideally around $152, with the expectation that it will eventually break above $155 and then $156.90. He outlines a series of price hurdles ($158, $167, $179) that the stock needs to clear to reach higher levels, emphasizing patience for this 'scenic route' to play out.

“You want to buy on the lower end anticipating that we're eventually going to break 155 we going to get above and then we need to break 15690.”

The YouTuber identifies a 'cup and handle' technical pattern on Boeing's chart, suggesting an upward movement. He believes the recent layoffs, while disruptive for employees, will be viewed positively by Wall Street, driving the stock higher. He also notes that Boeing is 'too big to fail' due to government support, preventing bankruptcy.

“155 opens the door for 158 that's Target number one okay 158 if we got positive momentum is going to take us to 167.”

The YouTuber advises buying Boeing (and similar 'noteworthy' companies) when they have been significantly beaten down, falling below their 200-day moving average, but then show signs of recovery by breaking back above that resistance level. He argues this technical setup often precedes a significant upward move, citing past successes with stocks like SoFi and Palantir.

“nothing that goes down will stay down forever all stocks eventually will come up now once this start coming back and get about this line and then eventually this line it is going to take off to the upside”

The YouTuber suggests being bearish on Boeing when it is trading below its 200-day moving average and unable to break back above it, especially with negative headlines. He notes that the 48-day moving average also acts as resistance in this scenario, indicating continued downward pressure.

“whenever a stock Falls below this line you you you have to get bearish or buy puts”

The YouTuber states that Boeing was a new position acquired by David Tepper, suggesting he sees value in the company despite its recent challenges. Tepper likely views it as a 'beaten up' company with a sustainable business, implying a value play.

“Boeing and Lyft were also acquired during the quarter those were all new positions for Tepper so clearly seeing opportunities in China and then seeing some opportunities in some US companies that have been at least beaten up a little bit.”

The analyst advises avoiding Boeing due to its past issues, including the 737 MAX crashes and problems with military contracts. They want to see several years of consistent, reliable performance before considering an investment, despite the stock potentially appearing cheap.

“Boeing to me is the equivalent of General Electric for the last decade until I see for sure that there isn't another squeaky wheel I can't get a deposing looks cheap from here but Boeing between the 737 Max between all of the issues on their military side where they were their military tanker came in 2X what it was budgeted for they were responsible for all of that overage and that when they finally started delivering them they had to take them out of service because they had forgotten to clean out Parts there was junk literally and they said following Boeing I need a couple of good years of Boeing saying yes we know what we're doing”