Jim Cramer Likes This Stock—Should You Be Buying?

Jim Cramer has taken a liking to shares of aircraft maker Boeing (NYSE:BA | BA Price Prediction) of late, and he has a pretty solid bullish case for why the fallen firm can get off the tarmac again. Undoubtedly, Boeing has dealt with more than one crisis over the past five years, and that’s pretty much left shares of the plane maker grounded (at least for the most part) after its COVID share price implosion.

Boeing stock is looking cheap, given several major catalysts that loom

It’s hard to believe, but shares of BA are still down close to 52% from 2019 highs. And while the company has gone through more than its fair share of turbulence, it remains just one of two global players. As plane demand comes online again, Boeing will naturally benefit, even with its painful past. With Boeing stock recently correcting off its 52-week highs, perhaps there is an opportunity to snag shares of Boeing before some potentially timely catalysts have a chance to really come into effect.

Indeed, the latest round of orders from Uzbekistan Airways is just the latest in what appears to be a pick-up in orders. Jim Cramer argues that recent delivery and order numbers are remarkable, and the stock could have what it takes to march even higher. I don’t always agree with Jim, but I think he’s absolutely right to be more upbeat on Boeing. Indeed, it’s easy to lose one’s patience with a name that’s underperformed in the past five years. However, early signs do seem to suggest the winds are turning in favor of the $162 billion plane maker.

Going into the new year, delivery numbers could really pick up the pace. As the company and its new CEO, Kelly Ortberg, get to work, I do think they’ll execute more smoothly than under its prior top bosses, who have fallen short of expectations on more than one occasion. With a seasoned new top boss that can deliver, I certainly wouldn’t count Boeing out as orders and deliveries look to pick up momentum going into the new year.

Why the 777X delays aren’t a big deal for shareholders

Add the 777X launch into the equation, and I think Boeing might have a generational catalyst up its sleeves that can lead to more positive surprises. Sure, the 777X has been hit with delays and shares have been punished accordingly. However, if you consider yourself a long-term investor, I don’t think such delays take anything away from the bull case. Arguably, it’s better to have delays than rush the launch of an aircraft that reportedly still has a “mountain of work.”

Personally, I think it’s a good sign that the 777X is facing delays. It shows that Boeing is taking its time to ensure it has a higher-quality product. If Boeing is going to turn its fortunes around, it needs to deliver a product that’s polished, even if it means pushing a bit of growth further into the future.

At the end of the day, the 777X is an ambitious twin-engine jet that’s described as “the world’s largest and most efficient.” There are quite a few orders in the books already, but deliveries might have to wait until 2027. I think the new aircraft will be worth the wait for airlines and shareholders.

The bottom line

At the time of this writing, shares of BA trade at just 2.0 times price-to-sales (P/S), which seems too low for a firm that has a new aircraft and robust order momentum behind it. Perhaps it’s time to get back in the name on the latest dip as the great Jim Cramer gives his blessing to a stock that seems unfairly punished. Sure, it’s proven unwise to buy BA stock on the way down, but given the catalysts in store and a new CEO who knows how to execute, I think the stage might finally be set for a long-awaited breakout.