Boeing Investments: Long-Term Expectations

Boeing's Strong Future

Boeing Company (NYSE:BA) stands out as an important stock to consider in the latest earnings season. Tim Seymour, founder and Chief Investment Officer of Seymour Asset Management, shared his long-term positive views on Boeing during a program on CNBC: 'I am truly long on this. The key point here is that Boeing has a high capacity to generate free cash flow in the medium and long term. Free cash flow is expected to exceed $10 billion by 2027. I believe that the costs related to the 777 aircraft will reach billions of dollars, but I don’t think this will significantly affect the 2025 figures. This is a great opportunity for medium and long-term investors.'

Seymour noted that Boeing is operating in alignment with regulators and believes there will be an order backlog exceeding $500 billion during this visit to Asia.

Sound Shore Management included the following statements regarding Boeing in its investment letter for the fourth quarter of 2024: 'The global aviation leader Boeing became a negative factor for the period. We managed to buy its shares at a 10% free cash flow yield in a normalized scenario. Over the past few years, the stock has shown significant increases in free cash flow thanks to recovering from operational struggles and increasing order activity. In the fourth quarter of 2023, it was one of our best-performing stocks with aircraft deliveries in November.'

Due to additional production issues that occurred in January 2024, we sold our position with a profit, believing that the restructuring efforts might be sufficiently postponed. However, while acknowledging Boeing's potential, we also believe that some artificial intelligence stocks have the potential for higher returns and limited downside risk. If you are looking for both an undervalued artificial intelligence stock and aiming to benefit from it, you may want to check out our report on the best short-term artificial intelligence stocks.