Military

Boeing Remains DJIA's Top Performer on Bribery Allegations Against Airbus

Paul Ausick

Published: November 4, 2017 9:15 am

Last Updated: January 12, 2020 6:37 am

Boeing Co.’s (NYSE: BA) share price rose by more than 2% last week, more than enough to extend the stock’s run as the best performer among the 30 stocks that make up the Dow Jones Industrial Average (DJIA). Shares added $5.29 last week to raise the year-to-date gain by nearly four percentage points to 68.1%.

Of the three other Dow stocks closest to Boeing’s yearly gain, Apple Inc. (NASDAQ: AAPL) added nearly 6% after a stellar quarterly earnings report to pushed its year-to-date gain to nearly 49%. Caterpillar Inc. (NYSE: CAT) dipped by about 0.9% to a gain of 47.33%, and Visa Inc. (NYSE: V) tacked on 1.5% to bring its annual gain to nearly 43%.

Boeing’s share price dipped to a weekly low on Wednesday, the same day that the U.S. Senate Banking Committee held a hearing on President Trump’s nominee to head the U.S. Export Import Bank. A previously staunch opponent of the bank, Scott Garrett, assured senators that he has had a change of heart and he vowed to keep the bank “fully open and fully operational. Period.” Investors may still have doubts.

More than anything that Boeing did last week, its shares probably reacted largely to news that arch-rival Airbus is being investigated in the United States, as well as in Britain and France, on bribery charges. Airbus is also seeking a replacement for the company’s long-time sales chief, John Leahy, who is retiring. Leahy did say last week that he will stay on until a successor is named.

Boeing stock closed at $261.75 on Friday, down about 0.3% on the day, in a 52-week trading range of $138.80 to $267.21. The 12-month consensus price target is $286.00, nearly $1 a share higher than last week’s target. The low price target is $203 and the high is $350.

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