5 War Stocks to Buy Now According to Hedge Funds

4. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 50    

The Boeing Company (NYSE:BA) makes and sells military aircraft, satellites, and missile defense systems. The role that these systems play in modern military conflicts is crucial, as demonstrated by pleas made by Ukraine to the West for air and missile support against Russian aggression in urban centers. European nations near Ukraine are likely to buy more The Boeing Company (NYSE:BA) products amid the war to protect themselves. 

Elite hedge funds are bullish on The Boeing Company (NYSE:BA). At the end of the fourth quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in The Boeing Company (NYSE:BA), the same as in the preceding quarter worth $1.4 billion.

In its Q1 2020 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and The Boeing Company (NYSE:BA) was one of them. Here is what the fund said:

“We’ve known The Boeing Company (NYSE:BA) 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 The Boeing Company (NYSE:BA) could be worth more than double its current price.”