Why Jim Cramer Isn't Buying More Boeing Despite Its Huge Navy Contract Win
Two main issues are holding him up.
TL;DR
- Boeing won a $20 billion contract to build the Navy's next-generation fighter jet, the F/A-XX Strike Fighter.
- The company beat out rival Northrop Grumman for the deal, which will eventually replace the F/A-18 Super Hornets.
- Jim Cramer is holding off on buying more Boeing stock due to an impending union contract vote and a recent software glitch discovered on the 737 Max 10.
- The Federal Aviation Administration is reviewing the software glitch for potential safety issues.
- Analysts from Wolfe Research and Bernstein view the contract win positively, with Wolfe noting Boeing's emerging monopoly in US sixth-gen fighter aircraft.
- Morgan Stanley identifies the labor vote as the primary near-term risk for Boeing's stock.
- Boeing shares have experienced a year-to-date decline, influenced by factors like geopolitical tensions, production delays, and the software glitch.