Boeing
Since reaching a 12-month high last November, shares of Boeing Co. (NYSE: BA) are down by around 7%. Over the past three months, however, the stock is up about 50%, partly due to a burst of deliveries in its defense business and partly to a 41% increase in commercial aircraft deliveries.
New orders for commercial jets rose by 62% year over year. Production of the 787 Dreamliner has resumed, but Chinese airlines are not expected to resume taking delivery of 737 Max aircraft for several more years. That’s 140 airplanes that will remain in storage. Boeing still needs to stabilize production of the 737, get more revenue from its defense business, and figure out a way to get more orders without launching a new aircraft.
Of 23 analysts covering the stock, 17 have a Buy or Strong Buy rating and the rest rate the shares at Hold. At a price of around $208.00 a share, the implied upside based on a median price target of $222.00 is 6.3%. At the high target of $261.00, the implied upside is about 17.6%.
The consensus estimate for fourth-quarter revenue is $20.02 billion, up 25.5% sequentially and by 35.4% year over year. Analysts are forecasting adjusted EPS of $0.237, compared to a loss of $6.18 per share in the prior quarter and a loss per share of $7.69 in the fourth quarter of last year. For the full 2022 fiscal year, Boeing is expected to post a loss of $8.79 per share, compared to last year’s loss per share of $9.44. Revenue is expected to increase by 7% to $66.64 billion.
Boeing stock trades at 66.7 times estimated 2023 earnings of $3.12 and 31.9 times estimated 2024 earnings of $6.52 per share. The stock’s 52-week range is $113.02 to $223.23. Boeing has suspended its dividend, and total shareholder return for the past year was 1.33%.
Freeport-McMoRan
Over the past 12 months, shares of copper and gold miner Freeport-McMoRan Inc. (NYSE: FCX) have added about 8%, largely due to a sharp boost of nearly 50% in the share price over the past six months.
Copper prices have jumped by more than a third since July, and gold prices are up by around 19% in the same period. Gold futures of December 2023 trade at around 9.7% above the current spot price, while copper futures for September trade flat after a gradual rise of just over 1% through April. A lot depends on how China manages to come out of its two-year slumber.
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