For the first time in three weeks, Boeing Co. (NYSE: BA) stock posted a week-over-week gain. Shares added about 0.3% last week and pushed Boeing’s year-to-date share price gain to 51.45%, solidifying Boeing’s hold as the best performing stock among the 30 stocks in the Dow Jones Industrial Average index.
All but eight Dow stocks have posted year-to-date gains, with the best — other than Boeing — being Apple Inc. (NASDAQ: AAPL), up 35.99%; Visa Inc. (NYSE: V), up 31.39%; McDonald’s Corp. (NYSE: MCD), up 29.61%; and Caterpillar Inc. (NYSE: CAT), up 22.84%. Last week’s moves were small for all these companies.
Boeing’s success may be attributed almost solely to cost control. In the second quarter, revenues were down 10% year over year, but costs were down by more than twice as much. The company has invested heavily in automation and trimmed its employee total by more than 2,000 workers.
The result was operating cash flow of $4.95 billion in the second quarter, well above the $4.47 billion in cash flow in the same quarter a year ago, and a total of $7 billion for the first half of the year.
Boeing gives every sign of being able to continue its run at the top of the Dow class. Boeing raised its full-year adjusted earnings per share forecast by about 6% at the midpoint of a new range of $9.80 to $10.00 per share, and the company still expects to deliver 760 to 765 new commercial jets this year.
Operating cash flow guidance was raised from $10.75 billion to $12.25 billion, and Boeing cut its capex estimate by $300 million.
The uncertainty raised by the antics of the Trump administration last week kept investors cautious. When (if) the political situation in the country settles down, Boeing is in a good position to continue dominating the Dow.
Boeing stock closed at $235.77 on Friday, up about 0.1% for the day, in a 52-week range of $126.31 to $246.49. The 12-month consensus price target is $252.20, and the highest target is set at $302.00.
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