Boeing Stock (NYSE:BA) Gains as the United States Air Force Takes Interest in 747s

The 747 was perhaps one of the most iconic entries in the entire product line for aerospace stock Boeing BA +1.58% ▲ . While it has been replaced by several different models, there are still some of them in service today. In fact, the United States Air Force (USAF) is taking an interest in the plane, buying several of Lufthansa’s DLAKY +0.29% ▲ old models. The reasons why might surprise you. They certainly surprised investors, and prompted a gain of nearly 1.5% in Monday afternoon’s trading.

Easter Sale - 70% Off TipRanks

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks

Reports note that the USAF is buying two of Lufthansa’s 747-8 models as part of a replacement measure for the Air Force One project, which has been delayed several times now. The Air Force, as a result, is starting to consider how it will train crews and staff the 747-8 that will be a growing part of the presidential fleet going forward.

So, the USAF is picking up some of Lufthansa’s extra models, to serve as trainers. Further, the models will also become spare parts repositories, as Boeing discontinued the 747-8i quite some time ago, reports noted. Lufthansa’s models, meanwhile, are therefore quite attractive, as they are among the last 747-8 models in passenger service anywhere.

Now Hiring

We have heard of Boeing hiring before, and new reports suggest that Boeing is looking to pick up some new employees down in Texas at a special event this weekend. The Boeing Center will host a hiring event on Saturday, looking for mechanics with avionics, electrical, and structural specialties.

Those unable to attend the event, yet still are interested in exploring career opportunities with Boeing, will have access to a webpage that will work similarly. While some might wonder why Boeing is hiring now, it stands to reason that Boeing will always need employees to help meet the strong demand for its aircraft. Even the President of the United States is waiting on a delivery, after all.

Is Boeing a Good Stock to Buy Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 14 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 49.95% rally in its share price over the past year, the average BA price target of $274.92 per share implies 29.91% upside potential.

Disclosure

Disclaimer & DisclosureReport an Issue