This year, leading aircraft manufacturer Boeing (BA) is struggling in the stock market. Its price has dipped nearly 40% year-to-date and remains under the bearish grips. It closed Tuesday’s bell at $152.98, surging more than 1.5% in the day’s trade. Despite the brief rise, investors are not fully confident about taking an entry position into the multinational manufacturing corporation.
Investors’ losing confidence in Boeing is the main reason the stock fails to scale up in the charts. Not just investors but even employees at the manufacturing plant are unhappy with the company’s handling of finances. Around 33,000 Boeing workers have been on strike since September, demanding a pay hike and pension benefits.
The strike has entered its sixth week and could prolong further, leading to disruptions and delays in aircraft manufacturing. All these are cocktails brewing for disaster for Boeing, making its stock head south in the charts. However, CNBC host Jim Cramer advised investors to accumulate Boeing stock despite the troubles, as it’s available at discounted prices.
Accumulate Boeing Stock At Its Lows: Jim Cramer
Mad Money host Jim Cramer called on investors to buy Boeing stock, indicating that its price could soon bottom out. The ‘buy low and sell high’ strategy could come into play here after the firm comes out of its bad business phase. “Boeing priced at $143, even better than I thought. I hope you got some. You can try to buy some more above that with a limit order, but that is a very nice price,” said Cramer.
Nonetheless, the risk-to-reward ratio here is high, as Boeing’s prospects are unclear. Only time will tell whether it will wither away its financial troubles and come clean or fall under pressure. There’s no doubt that the stock is at a low point, but since it has not come out of its distressing situation, chances of a downturn remain high.
