Finally, the lines are back to work at aerospace stock Boeing (BA). And not a moment too soon, either, as new reports suggest that Boeing had one of its worst months for aircraft shipments in a long time. But the news of restarted lines and revived production certainly did it no harm, and Boeing shares shot up nearly 5.5% in Tuesday afternoon’s trading.
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The word from Bloomberg noted that November deliveries at Boeing—a whopping nine 737 Max jets, two 787 Dreamliners, and two 777 models—were the worst they had been in four years. Moreover, all of the jets shipped were actually built before the strike, so Boeing was literally just sending leftovers.
So, why the huge delay? Associated Press reports declared that it was “…a process of identifying and fixing potential problems” that slowed the lines down. But the fact that Boeing barely cracked the double-digit mark for plane shipments in November was underscored by the fact that it had a substantial book of business. It took orders for 49 planes in November, and lost an order for 14 to United Kingdom airline TUI.
More Layoffs, This Time in Washington
And then, more layoffs landed. These were not necessarily unexpected; Boeing has had a plan to let go of around 17,000 workers as part of a bid to cut costs. But now, another 396 employees are being let go, this time out of Washington state.
Fox Business brought this report out, noting that “only a very small number” of employees will actually lose their jobs for Christmas. The rest will see their layoffs start in mid-January, with severance pay and benefits paid for three months after departure.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 14 Buys, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 33.61% loss in its share price over the past year, the average BA price target of $191.30 per share implies 14.84% upside potential.
