What Traders See in the Boeing Company (BA)

Giant airplane maker, The Boeing Company (NYSE:BA), continues to receive mixed reaction on Wall Street at the back of receiving an order worth $56 billion from Emirates. CNBC’s ‘Fast Money’ crew, Jon Najarian and Brian Kelly, were at hand to put to perspective what they think about Boeing as an investment opportunity.

Record revenues continue to be the most attractive feature to Mr. Najarian, who remains bullish on its stock. Fuel efficient planes have seen The Boeing Company (NYSE:BA) receive increased orders in the airline industry as more airlines continue to implement strategies aimed at reducing their operation costs.

“Let’s start off with record revenues over at Boeing right now, the stock is absolutely hitting. Number two: fuel efficiency, others in the airline space, want those more fuel efficient two-jet aircrafts that Boeing makes.” said Mr. Najarian.

Most airlines in the industry prefer the two-jet fuel efficient airplanes made by The Boeing Company (NYSE:BA) compared to the four-jet, big, old aircraft that Airbus makes according to Mr. Najarian. The fact that Boeing stocks’ is 8% down year-to-date also makes them more interesting and worth investing, at low prices with the potential of growing over time. Mr. Najarian was also bullish on Boeing dividends which he believes could grow to over 4% over the next two years.

Brian Kelley, on the other hand, maintained a different approach over The Boeing Company (NYSE:BA)’s stock saying that the company could only grow at the back of tremendous growth in the emerging markets. Mr. Kelley maintained a cautious approach over Boeing on the fact that airlines like Lufthansa and Air France have already announced increased levels of overcapacity in the travel industry.

“We have already seen the problems with Lufthansa and Air France, everybody warning that there is overcapacity in the airline industry, so I think those numbers are going to have to come down,” said Mr. Kelly.

Mr. Najarian also pointed out that The Boeing Company (NYSE:BA) is one of the best stocks in the Dow although the company’s stock did not enjoy a big upswing in the market after announcing a deal with Emirates.

Disclosure: none