Boeing: Taking Airline Production Stocks for a Ride

 |  Includes: BA, PCP, RTI
by: TraderMark

I've been watching this move in Boeing (NYSE:BA) for a few months in awe; this is definitely the definition of "cyclical". On the plus side, this is one thing still made in the USA, so any good news for Boeing is good news for the general economy.

  • The aircraft maker reported Q4 sales rose 42%, year over year, to $17.9 billion, yielding profit per share of $1.75; that was ahead of analysts’ average $17.6 billion estimate on the top line and way, way ahead of $1.36 on the bottom line. (Click to enlarge)

The halo effect is now rubbing off on the entire industry as many suppliers are surging right along with the giant. Today, Precision Castparts (BATS:PCP) - a stock that was on fire in 2007 - was upgraded by Goldman Sachs.

  • Goldman Sachs upgraded aerospace parts maker Precision Castparts to buy from neutral on Monday, citing renewed demand for commercial aircraft. "The commercial [original equipment] outlook has improved significantly as Boeing Co. and Airbus are now raising [production] rates, and Precision Castparts is a major beneficiary," the investment firm said in a note to investors. Goldman Sachs upped its 12-month price target for Precision Castparts to $153 from $136.

Titanium Metals (TIE), along with RTI International Metals (NYSE:RTI), are the "daytrader's choice" to play the sector and have been in an unrelenting move of late. Once more it appears 2008 to early 2009 was just a dream sequence from "Dallas" and we're right back to the good ole times.

Disclosure: No positions

Original article