What Are the Pros and Cons of Buying Boeing Stock?


Quick Answer

As of 2015, the pros of buying Boeing stock are that the company is a global powerhouse and it has billions of dollars in cash flow, according to InvestorPlace. Boeing has a strong order book as well, notes Seeking Alpha. Investment cons include competition from Airbus and safety issues.

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What Are the Pros and Cons of Buying Boeing Stock?
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Full Answer

Boeing was the largest manufacturer of commercial jetliners and military aircraft in 2013, according to InvestorPlace. Other types of business and products that help the stock move higher include missiles, satellites, security software and launch vehicles, and the company has billions of dollars in cash flow. Boeing also has lots of cost-cutting and productivity initiatives that help earnings and improve its stock value.

Boeing's order book is very strong, according to Seeking Alpha. There are orders for 5200 commercial aircrafts worth $440 billion, and this is a strong investment sign.

The major disadvantage of investing in Boeing is stiff competition from Airbus and other aircraft companies, as reported by InvestorPlace. Airbus has been receiving a lot of orders from Japan and the Middle East, which could affect the stock price of Boeing in the long run.

Additionally, the Dreamliner has had a lot of safety issues in the past, and this affects the price of Boeing stock, as InvestorPlace explains. For example, in December 2014, Boeing announced that engines made by General Electric Company were susceptible to ice crystal formation when flying near thunderstorms, posing a safety issue, and such news negatively affected the company's stock.

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