The Boeing Company (BA), United Technologies Corporation (UTX) – Here We Go Again: Headline Risk Returns For This Aerospace Giant

Shares of aerospace juggernaut The Boeing Company (NYSE:BA) have spent the last couple years flying high. As global economies continue its steady recovery from the global financial meltdown of 2008, demand for Boeing aircraft has surged. To illustrate, investors have been treated to 40% gains just since the start of 2013.

After another incident which raised questions regarding the safety of the company’s Dreamliner 787, however The Boeing Company (NYSE:BA) shares have seen some turbulence in recent trading sessions. Should investors take this opportunity to take profits? Or is there still room for Boeing’s ride higher to continue?

Boeing, we have a problem

On Friday, July 12, investors were likely rattled when it became known that a The Boeing Company (NYSE:BA) Dreamliner 787 had caught fire at London’s Heathrow Airport.

Boeing shares fell hard on the news, serving as Friday’s biggest laggard among the Dow Jones Industrial Average. But the market proved once again it tends to have a short memory, as The Boeing Company (NYSE:BA) retraced much of its decline when trading resumed Monday.

Investors were likely relieved when investigations revealed the plane’s batteries were not the cause of the fire. As of now, the market seems to be betting this is all ado about nothing, and I’d have to agree. Boeing emerged unscathed from its previous incident regarding the safety of its planes.

The safety of the jet was first called into question after several reported problems, including when an electrical fire broke out in an empty Japan Airlines 787 Dreamliner in January.

After the Dreamliner’s problems surfaced, The Boeing Company (NYSE:BA)’s stock price experienced only a slight blip in what has otherwise been an impressive run over the past few years. Shares made up losses in the aftermath of the initial Dreamliner issues, and then some.

That’s because despite the headlines, Boeing is a hugely successful, growing firm. The company racked up 19% revenue growth last year and 8% growth in earnings from operations.