Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

3. The Boeing Company (NYSE:BA)

Growth Investment Ratio: 292%

Number of Hedge Fund Holders: 42

The Boeing Company (NYSE:BA) is another mega-American firm that has faced a lot of troubles in 2024. While Intel’s troubles are in the semiconductor industry and have not affected downstream players, the firm’s production woes in the aftermath of safety problems with its aircraft have disrupted the travel industry as well. The Boeing Company (NYSE:BA) has faced off with striking unions and regulators, the cumulative effect of which has led to delayed aircraft deliveries. As a result, the road is long and hard for the firm to regain its lost stature; a fact that’s also evident in its 44.9% year-to-date share price drop. Production efficiencies and safety overhaul coupled with satisfied employees are driving The Boeing Company (NYSE:BA)’s hypothesis and have the potential to affect its share price moving forward. In the meantime, multi-billion dollar orders such as a recent $2.6 billion Air Force contract for prototype aircraft should help the firm.

The Boeing Company (NYSE:BA)’s management commented on its production during the Q3 2024 earnings call. Here is what they said:

“The quarter ended with approximately 60 737-8s built prior to 2023, the vast majority for customers in China and India, down 30 from last quarter. Additional progress on shutting down the shadow factory has been impacted by the work stoppage, which will now extend into next year. On the -7 and -10, inventory levels remained stable at approximately 35 airplanes and the certification time lines remain unchanged. On the 787 program, we delivered 14 airplanes in the quarter. And as previously noted, we continue to work through production recovery plans on heat exchangers and delivery delays associated with seat certifications.

The program is currently producing at 4 per month and still plans to return to 5 per month by year-end. We ended the quarter with 30 airplanes in inventory built prior to 2023 that required rework, down 5 from last quarter. Our ability to finish the rework and shut down the shadow factory has also been impacted by the work stoppage and will now extend into next year. Finally, on the 777X program. As previously announced, the $2.6 billion pretax charge primarily reflects our latest assessment of the certification time lines to address the delays in flight testing of the 777-9 as well as anticipated delays associated with the IAM work stoppage. We’ll continue to follow the lead of the FAA as we progress through the certification process and now expect first delivery in 2026.

Year-to-date, 777X inventory spend has averaged a bit below $800 million per quarter. The cash profile will look similar to prior development programs with the year prior to first delivery, typically the largest use of cash driven by inventory build associated with the production ramp, which will unwind as deliveries commence.”