5 Best Aerospace Stocks to Buy Now

4. Boeing (NYSE:BA)

No of HFs: 43

Total Value of HF Holdings: $1.70 Billion

At the end of September, a total of 24 hedge funds tracked by insider monkey were long this stock. An insider recently purchased 1,152 shares at around $173 in August 2020. The stock is up 19% since then. Miller Value Partners mentioned BA in its Q1 2020 investor letter:

“We’ve known Boeing for a long time. It’s always been a high quality company that’s traded for a premium valuation owing to its position as a global duopoly. We’d looked at it recently after weakness due to its highly publicized Max 737 issues, but it never got cheap enough for us to pull the trigger. After the pandemic, the stock went into freefall as its customer bases’ business dried up and people worried about its liquidity. The stock fell from $338 on February 19th when the S&P hit its high to a low of $89. We bought the stock after the new CEO Dave Calhoun said publicly that it would not take government capital if it required equity dilution because it had many other options. Our average price is just above $120 where it was trading for less than 7x what it earned in 2018. It will likely take a while to normalize to those earnings levels, but this business will survive and ultimately we will own a leader in a global duopoly. Even on depressed forecasts, the company currently has about a 10-15% free cash flow yield. If and when the economy normalizes, we think Boeing could be worth more than double its current price.”

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