Shares of Boeing Co. (NYSE:BA) rallied during the trading session on Tuesday by more than 3% following a report from the company that revealed the company is breaking another record for the sixth consecutive year in terms of deliveries and production.
On Tuesday, Boeing announced that it remains to be the top airplane manufacturer in the world as it revealed its 2017 jet orders and delivery data. For the year 2017, the company disclosed an overall positive year for the airplane manufacturing company as well as expectations of a growing production this 2018.
Boeing, which also happens to be one of the top-performing stocks in the Dow Jones Industrial Average for the year 2017 also posted a steady cash flow that will be enough to sustain its dividends, buy back shares, and to fund other potential products as well.
For the year 2017, the American aerospace company was able to deliver 763 planes which is higher than its previous targets back in 2015 sending the shares of the company 2.3% higher during the most recent trading session to trade at $318.43 pushing other stocks under the Dow Jones higher along with it.
Analysts then forecasted the stock of Boeing to rise further in 2018 following its double-digit growth throughout the year 2017. Analysts also stated that the shares of the company are still currently undervalued with the stock having more room to grow in 2018 should the company be able to sustain its free cash flow margin at a range of around 13% to 15%.
Back in 2010, the company has increased its free cash flow from $1.83 billion to $10.5 billion last year representing a rise of 34% from 2016. The surge in Boeing’s cash flow supported the rally of Boeing shares which has grown by more than 90% back in 2017 with the stock currently trading at a small discount compared to its competitors.
Boeing is expected to also have a stellar year this 2018 as the company prepares to meet its growing orders and deliveries without losing the competition to European rival company Airbus whose production has been catching up in the past quarter.
The orders for the Boeing single-aisle 737 jet which is currently one of the company’s popular planes has been growing recently as more airline companies place more orders for the MAX airplanes which offer them fuel efficiency. Despite the growing orders for their 737 jets, the Boeing 747 orders have recently been declining with the company currently holding around 12 pending orders for the said unit compared to their orders for 28 units during the previous year.