Shares of Boeing climbed to the highest since February 2024, topping an alternative buy point, as the company's chief executive said production is climbing. A court setback for tariffs also seemed to help Boeing stock.
CEO Kelly Ortberg expects a "dynamic environment" until trade agreements are finalized. He added the company, which estimates a tariff impact of less than $500 million this year, faces a larger threat from retaliatory actions. China temporarily refused to accept Boeing jet deliveries in retaliation for U.S. tariffs. But deliveries are resuming next month, after the U.S. and China agreed to a truce.
Most of Boeing's tariffs are on products imported from Japan and Italy, and primarily for the 787 Dreamliner, according to a preliminary transcript from FactSet.
Ortberg's comments at a Bernstein conference Thursday were the first since the U.S. Court of International Trade struck down most of President Donald Trump's tariffs, saying he lacked the authority to impose reciprocal and some other types of levies. Trump is appealing and still has other tools to impose tariffs.
Boeing has suffered through several years of quality-control problems, and the CEO said the company is able to raise production.
Production of the 737 MAX is nearing 38 planes per month, the limit set by the Federal Aviation Administration. It hopes to lift it to 47 by the end of the year. Output of 787s is going from five to seven per month, after completing a review with the FAA.
The planemaker's long supply chains are, so far, keeping up, Ortberg said. Some deliveries face delays while waiting for certification of luxury seats.
"Got a lot of work yet to do, but I think the mantra of getting the company turned around, restoring Boeing back to the iconic brand that we all know and want is underway," he said.
Boeing Stock Hits A Buy Point
Boeing stock rose nearly 3% in heavy trading Thursday afternoon. It briefly climbed above the 209.66 buy point of a nine-day pattern. The move offers an alternative entry after Boeing became extended from a double-bottom base with a 184.40 buy point.
The relative strength line is at the highest since last June, a positive sign. Boeing stock has a Composite Rating of 78.
Boeing's 21-day average true range is 2.5%.
The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
