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Is Boeing Stock a Solid Long Term Investment?


These days, the idea of trying to buy stock can make your head spin. It's almost impossible to tell whether or not any stock is a good long-term investment, as even the ones that used to seem like a sure thing have proven time and again that they are anything but certain. That said, a lot of people still depend on their success on the stock market to save money for the future. If you're looking for something that's a potential good long-term investment but you're not willing to stick your neck out with something risky, it might be time to start looking for stock that has been around for decades. One that typically comes up in such a discussion is Boeing.

Boeing- A Company With Staying Power

Most people feel relatively comfortable with the idea of buying stock in Boeing because the company has been around for such a long time. They have been a major player in the development of air travel since its inception and they have proven that they can weather difficult, even exceptionally challenging times and still come out on the other side of it relatively intact. This is something that investors look for when they're trying to figure out which stock to purchase as a long-term investment. In addition, the company has proven that they're capable of being flexible. Aviation has changed a lot over the last several decades and Boeing has been on the cusp of most of those changes. Some companies would have undoubtedly gone by the wayside under these same types of conditions, yet Boeing has always found a way to not only come out on top, but more often than not, to lead the charge. In fact, they recently released their internal prediction for the performance of their company over the course of the next 10 years. In that prediction, they estimated more than $9 trillion worth of solid opportunities for growth during that time. The last time that they made such a prediction was in 2020. This time around, they're projected earnings are up by roughly 5.9%. That's definitely good news for anyone that plans on investing in the stock, especially if you have plans to invest in it on a long-term basis.

Indications of Good Things to Come

The information contained in the above paragraph should be enough to encourage most investors to at least consider purchasing Boeing stock as a long-term option. However, those who remain unconvinced can also take solace in the fact that the company now has standing, long-term contracts with such air travel stalwarts as Southwest Airlines and United Airlines. This is definitely good news because it basically means that these airlines, among others, will be coming back to Boeing again and again for additional inventory in the next several years. It also points out one of the biggest losses that the aircraft manufacturer has faced throughout the course of their existence, and that includes their propensity to build more aircraft than they can potentially sell. Fortunately, that seems to have changed with these contracts because they are now building aircraft as needed as opposed to storing inventory that they may or may not be able to unload. That should simultaneously reduce their debt. Since outstanding debt has been virtually the only thing that has caused most investors to hold back when it comes to considering them as a long-term stock option, they now don't really have any excuses not to invest. Since the company's debt is being actively reduced and they have continued orders coming in from two major airlines for the next several years, it would basically take some type of catastrophic event for the company to fold at this point.

The Proof Is in the Numbers

Any individual who is discerning about their investment choices in the stock market is going to want to see some type of concrete evidence before they make the decision to invest in anything on a long-term basis. The numbers for Boeing stock are rather positive, even during a time when a lot of companies are not experiencing this type of growth. Today, you can purchase a share of Boeing stock for $214.31. Over 21 analysts have looked at this stock over the course of the next 12 months and almost all of them believe that this same share of stock will be worth at least $270 within that time frame. Many of them expect it to exceed that level, potentially even being worth as much as $306 per share by this time next year. Even if the stock were to drop significantly for one reason or another, most analysts don't believe that it would go below approximately $169 per share. Granted, that's a far cry from the $214 per share that you would have to fork over in order to purchase Boeing stock right now. That said, this is a company that always seems to bounce back. Therefore, the idea of holding onto the stock until it starts to perform better again is a little easier to swallow than with some other companies. At the end of the day, no one can make a decision for any investor except for themselves. They can do all of the analysis they like and they can go to as many experts as they would like for advice. However, they have to be the ones to make the decision. There's no doubt about it, buying stock in Boeing is a lot less risky than buying stock in most of the other companies that you can find publicly traded on the stock market today. If you're looking for a long-term stock that has some sense of stability behind it, it really is hard to beat this particular option.

Allen Lee

Written by Allen Lee

Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.

Read more posts by Allen Lee

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