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Can Boeing stock fly again above $300?

US aircraft manufacturer Boeing (NYSE: BA) surprised Wall Street with stronger-than-expected second-quarter earnings.

Can Boeing stock fly again above $300?

US aircraft manufacturer Boeing (NYSE: BA) surprised Wall Street with strong second-quarter earnings on Wednesday. Boeing reported a profit of $587 million in the last quarter boosted by the increase in its Boeing 737 MAX deliveries. The company has delivered more than 130 Boeing 737 MAXs since November 2020.

  • Earnings per share (EPS) $0.40 vs. -$0.83 expected

  • Revenue $17.4 billion vs. $16.4 billion expected

“We continued to make important progress in the second quarter as we focus on driving stability across our operations and transforming our business for the future,” Boeing CEO, David Calhoun said. "While our commercial market environment is improving, we're closely monitoring Covid-19 case rates, vaccine distribution and global trade as key indicators for our industry's stability," he added.

The Aerospace giant planning to maintain current staffing levels of about 140,000 employees. Previously the company had targeted to reduce the workforce to 130,000 employees. The company currently is producing 16 737 Max aircraft a month with plans to increase that to 31 a month by early 2022.

However, 2 main obstacles that Boeing has to overcome in the coming days

  1. The first one is the rise of the highly contagious Delta variant of COVID-19. The new variant already spreading rapidly in parts of Asia and European countries. Because we already witnessed last year the Boeing stock plunged below $100 due to steep COVID-19 sell-off.

  2. Insufficient demand for Boeing 737 MAX in China. During the last 2 quarters compared to other countries, the demand for 737 MAX has been slow in China. “We continue to work with global regulators and still anticipate that the remaining regulatory approvals will occur this year, including China, and as always we will follow global regulators lead in the steps ahead.” - CEO, David Calhoun said recently.

Boeing (BA) technical outlook

HASH

Boeing stock climbed more than 6% to $237 on Wednesday after the company reported stronger-than-expected earnings results. $BA currently supported at $200. On the upper side, the short-term resistance at $244 any break above this level will open $260. In the long term, if the $BA holds above $200 there are chances the stock eventually rise to $300. On the other side, if the stock break and close below $200, the next immediate support to watch $190/70.

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