- Boeing outperforms its peers and the market in multiple periods.
- Boeing has a strong backlog of seven years-plus based on current production capacity.
- Applications of new technologies throughout Boeing’s business will allow for margin expansion to the mid-teens by 2020 and further expansion beyond that.
- The stock has been in consolidation mode year to date. So, it’s a good time to dig further into the company to see if it fits your portfolio.
Aerospace and defense stocks have finally taken a breather and are in consolidation. As I was reviewing a potential dividend-growth stock to buy from the group, I noticed that Boeing (NYSE:BA) has outperformed its peers, including Lockheed Martin (NYSE:LMT), General Dynamics (NYSE:GD), and Raytheon (NYSE:RTN) and the market in different periods, including the year-to-date, one-year, three-year, five-year, and 10-year periods.
A Business Overview
Boeing is the world’s biggest aerospace company. It’s also the leading manufacturer of commercial airplanes and defense, space and security systems and a key provider of government and commercial aerospace services.
Boeing supports airlines and the U.S. and allied government customers in 150-plus countries. Last year, its global services segment made up about 15.6% of revenue. Year to date, this segment grew 11%, which will help stabilize its overall business performance as this business is non cyclical, unlike the commercial aerospace industry.