Boeing appears toppy at $240 but the market is signaling the potential for PE expansion which would allow for a higher justifiable stock price.
The defense industry continues to see increased demand due to the U.S.’s stand-off with North Korea (who continues to test ICB missiles) and tensions with China regarding the matter.
Boeing is projected to experience organic growth over the coming years. In conjunction with a justifiable case for PE expansion, there is more potential upside to shares.
If PE expansion does not occur, BA could move sideways from here. Short selling provides little upside compared to risks.
Boeing (BA) is a solid play in the defense sector, one of the biggest driver’s of the Dow’s climb to the 22,000 milestone, and is rated the maximum of 10 by