Spirit AeroSystems Holdings, Inc. engages in the design, engineering, manufacture, and marketing of commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, floor beams, nacelles, struts/pylons, horizontal and vertical stabilizers, flaps and slats flight control surfaces, wing structures, and wing systems. This segment primarily serves commercial and business/regional jet programs. The Defense & Space segment engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fuselage, strut, nacelle, and wing aerostructures; provision of missiles and hypersonics solutions, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems; forward cockpit and cabin, and fuselage work on rotorcraft aerostructures; and classified programs. This segment primarily serves U.S. Government defense programs. The Aftermarket segment provides maintenance, repair, and overhaul services; fuselage, strut, nacelle, and wing aerostructures spare parts; repair services for radome, flight control surfaces, and nacelles; rotable assets trading and leasing; and engineering services. This segment primarily serves both commercial and defense and space programs. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

Spirit Aerosystems Holdings, Inc.

Investors in Spirit AeroSystems Holdings Inc (Symbol: SPR) saw new options become available today, for the December 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SPR options chain for the new December 19th contracts and identified one put and one call contract of particular interest.
The put contract at the $32.00 strike price has a current bid of 25 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $32.00, but will also collect the premium, putting the cost basis of the shares at $31.75 (before broker commissions). To an investor already interested in purchasing shares of SPR, that could represent an attractive alternative to paying $38.45/share today.
Because the $32.00 strike represents an approximate 17% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 82%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.78% return on the cash commitment, or 4.45% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Spirit AeroSystems Holdings Inc, and highlighting in green where the $32.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $39.00 strike price has a current bid of 5 cents. If an investor was to purchase shares of SPR stock at the current price level of $38.45/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $39.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 1.56% if the stock gets called away at the December 19th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SPR shares really soar, which is why looking at the trailing twelve month trading history for Spirit AeroSystems Holdings Inc, as well as studying the business fundamentals becomes important. Below is a chart showing SPR's trailing twelve month trading history, with the $39.00 strike highlighted in red:
Considering the fact that the $39.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 48%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.13% boost of extra return to the investor, or 0.74% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 58%, while the implied volatility in the call contract example is 33%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $38.45) to be 27%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Paul Singer Stock Picks
VEV shares outstanding history
Top Ten Hedge Funds Holding ERY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting SPR Put And Call Options For December 19th

Investors in Spirit AeroSystems Holdings Inc (Symbol: SPR) saw new options begin trading today, for the September 2026 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 375 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SPR options chain for the new September 2026 contracts and identified one put and one call contract of particular interest.
The put contract at the $40.00 strike price has a current bid of $1.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $40.00, but will also collect the premium, putting the cost basis of the shares at $38.20 (before broker commissions). To an investor already interested in purchasing shares of SPR, that could represent an attractive alternative to paying $40.96/share today.
Because the $40.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 64%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.50% return on the cash commitment, or 4.38% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Spirit AeroSystems Holdings Inc, and highlighting in green where the $40.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $42.00 strike price has a current bid of $3.00. If an investor was to purchase shares of SPR stock at the current price level of $40.96/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $42.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.86% if the stock gets called away at the September 2026 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SPR shares really soar, which is why looking at the trailing twelve month trading history for Spirit AeroSystems Holdings Inc, as well as studying the business fundamentals becomes important. Below is a chart showing SPR's trailing twelve month trading history, with the $42.00 strike highlighted in red:
Considering the fact that the $42.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 42%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.32% boost of extra return to the investor, or 7.13% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 33%, while the implied volatility in the call contract example is 29%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 249 trading day closing values as well as today's price of $40.96) to be 26%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Also see:
Best High Dividend Stocks
Top Ten Hedge Funds Holding AMSC
Top Ten Hedge Funds Holding GOOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting SPR Put And Call Options For September 2026

The NASDAQ 100 After Hours Indicator is down -.81 to 22,189.71. The total After hours volume is currently 173,627,396 shares traded.
The following are the most active stocks for the after hours session:
Snap Inc. (SNAP) is unchanged at $8.32, with 14,501,942 shares traded. SNAP's current last sale is 92.44% of the target price of $9.
NVIDIA Corporation (NVDA) is -0.19 at $147.71, with 8,221,382 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2025. The consensus EPS forecast is $0.93. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Comcast Corporation (CMCSA) is unchanged at $35.21, with 6,346,209 shares traded. CMCSA's current last sale is 88.03% of the target price of $40.
Palantir Technologies Inc. (PLTR) is -0.2 at $143.03, with 5,332,721 shares traded. PLTR's current last sale is 130.03% of the target price of $110.
Intel Corporation (INTC) is unchanged at $22.55, with 4,723,943 shares traded. INTC's current last sale is 107.38% of the target price of $21.
Spirit Aerosystems Holdings, Inc. (SPR) is unchanged at $37.01, with 4,679,937 shares traded. SPR's current last sale is 100.03% of the target price of $37.
Aurora Innovation, Inc. (AUR) is unchanged at $5.45, with 4,358,325 shares traded. AUR's current last sale is 45.42% of the target price of $12.
Royalty Pharma plc (RPRX) is unchanged at $36.14, with 4,280,447 shares traded., following a 52-week high recorded in today's regular session.
Kenvue Inc. (KVUE) is unchanged at $21.19, with 4,175,641 shares traded. KVUE's current last sale is 88.29% of the target price of $24.
Medical Properties Trust, Inc. (MPW) is +0.0195 at $4.52, with 4,051,989 shares traded. MPW's current last sale is 90.39% of the target price of $5.
General Motors Company (GM) is unchanged at $49.00, with 3,961,737 shares traded. GM's current last sale is 90.74% of the target price of $54.
Walmart Inc. (WMT) is unchanged at $98.00, with 3,905,395 shares traded. As reported by Zacks, the current mean recommendation for WMT is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Jun 24, 2025 : SNAP, NVDA, CMCSA, PLTR, INTC, SPR, AUR, RPRX, KVUE, MPW, GM, WMT

(RTTNews) - Spirit AeroSystems Holdings, Inc. (SPR) Monday announced that it has entered into a definitive agreement with aerospace major Airbus SE (EADSY.PK) to transfer ownership of certain assets and sites involved in the production of Airbus aerostructures to Airbus.
The company expects the divestiture of these assets to close concurrently with Spirit's previously announced acquisition by aerospace and defence major Boeing Co. (BA). Both deals are expected to close in the third quarter of 2025, subject to regulatory approvals, among other closing conditions.
In addition, Spirit has entered into a memorandum of agreement with Airbus. Under the deal, Airbus has agreed to, among other things, provide Spirit with non-interest-bearing lines of credit of $200 million, which will be used by Spirit to support Airbus programs.
Following the latest deal closure, Airbus will take ownership from Spirit of the site of Kinston, North Carolina, U.S. (A350 fuselage sections); the site of St. Nazaire, France (A350 fuselage sections); the site of Casablanca, Morocco (A321 and A220 components); the production of components for the A320 and A350 wings in Prestwick, Scotland; the production of A220 pylons in Wichita, Kansas, U.S.; and the production of A220 wings in Belfast, Northern Ireland.
Further, Airbus will buy the remainder of the Belfast site, the production of the A220 mid-fuselage, as well as the assets in Subang, Malaysia related to Airbus programs, if a suitable buyer is not identified for the assets before the closing of the transaction.
Irene Esteves, Spirit AeroSystems Executive Vice President and Chief Financial Officer, said, "For many years, Spirit's collaboration with Airbus allowed us to deliver aerostructures for some of their most important aircraft programs. Entering into this agreement is a significant milestone as we work towards the closing of the Boeing acquisition..."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Spirit AeroSystems To Divest Certain Related Assets To Airbus In Line With Boeing Deal

In trading on Thursday, shares of Spirit AeroSystems Holdings Inc (Symbol: SPR) crossed below their 200 day moving average of $33.49, changing hands as low as $32.57 per share. Spirit AeroSystems Holdings Inc shares are currently trading down about 4.1% on the day. The chart below shows the one year performance of SPR shares, versus its 200 day moving average:
Looking at the chart above, SPR's low point in its 52 week range is $28.921 per share, with $37.08 as the 52 week high point — that compares with a last trade of $32.63.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
GCT Historical Stock Prices
CRBP Split History
Funds Holding EMBK
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SPR Crosses Below Key Moving Average Level

Woodward, Inc.’s WWD shares reflect muted growth with only a 9.7% year-to-date (“YTD”) rise. Though this compares favorably with Aerospace -Defense Equipment industry’s growth of 2.8% and the S&P 500 composite’s decline of 5.1%, the question arises whether the stock can gain further momentum.
Price Performance
Image Source: Zacks Investment Research
The stock is trading above its 100-day moving average, indicating robust upward momentum and price stability. Closing at $182.49 as of yesterday’s trading session, the WWD stock is currently trading 9.5% below its 52-week high of $201.64, attained on Nov. 26, 2024.
Image Source: Zacks Investment Research
Can Woodward stock continue to rally this year, driven by several tailwinds? Let us discuss the pros and cons of WWD and determine the best course of action for your portfolio.
WWD’s Aerospace Unit the Main Catalyst
Strength in Aerospace is driving top-line expansion for Woodward along with the core industrial segment. Revenues from Woodward’s Aerospace business are expected to improve in the upcoming quarters, driven by strength in the commercial aftermarket as well as higher defense activity, despite supply-chain challenges.
In the first quarter of fiscal 2025, net sales for the segment were up 7% year over year, despite the negative impact from the Boeing work stoppage. Defense OEM and defense aftermarket sales were up 21% and 8%, respectively, year over year. Commercial aftermarket sales increased 19%, attributed to robust passenger traffic and higher legacy aircraft utilization.
Geopolitical developments have been driving demand for defense products and the company expects strong growth across its defense portfolio in 2025, including a considerable increase in smart defense spending. For fiscal 2025, Aerospace segment revenues are anticipated to increase in the range of 6-13%, whereas segment earnings (as a percentage of revenues) are expected to be 20-21%.
Several Tailwinds in WWD’s Industrial Business
Woodward’s Industrial business segment has been gaining from solid demand for power generation and continued requirement for primary and backup power for data centers. Higher investment in gas-powered generation to support grid stability is another tailwind. Increasing demand for alternative fuels across the marine industry, as well as momentum in the global marine market brought on by higher utilization, bodes well. Within oil and gas, an encouraging investment outlook in China, the Middle East and India’s refining and petrochemical activities are other growth drivers.
Woodward has been investing significantly in upgrading technologies to secure fresh businesses. It is spending on new manufacturing units and automation equipment to perk up efficiency as the company intends to accelerate production. At the Rockford facility, Woodward noted that the installation of advanced automation, including cobots (collaborative robots), has improved operational efficiency. In fiscal 2024, Woodward completed a $55 million, multi-year transformation of the Aerospace Maintenance, Repair and Overhaul facility in Loves Park, IL, to meet Commercial aftermarket opportunities.
Volatile China on-highway, supply-chain challenges in Aerospace and prevailing weakness over global macroeconomic conditions remain overhangs. Management continues to expect full-year revenues from China’s on-highway natural-gas trucks to be $40 million, indicating a significant decline of $175 million from fiscal 2024. Also, within oil & gas, soaring domestic production levels in the United States were not translating into upstream service growth due to low commodity pricing. Owing to these factors, Industrial segment revenues are expected to decline in the band of 7-11%.
WWD’s Healthy Capital Deployment Strategy
The company’s strong capital-allocation policy bodes well as this enables it to fund strategic initiatives like innovation and acquisitions, and boost capital returns. During fiscal 2024, WWD returned $449 million to its shareholders in the form of $58 million of dividends and $391 million of share repurchases. In the last reported quarter, Woodward returned $50 million to its shareholders in the form of $15 million of dividends and $35 million worth of share repurchases.
WWD also hiked its quarterly dividend by 12% to 28 cents per share in February 2025.
WWD Trades at a Discount
The WWD stock is trading at a discount, with a forward 12-month Price/Earnings of 27.48X compared with the industry’s 35.93X, making it an attractive investment opportunity.
Image Source: Zacks Investment Research
How to Strategize Investment in the WWD Stock?
WWD’s momentum in Aerospace and core Industrial segments, along with discounted valuation and shareholder returns, makes it an attractive investment for the long term.
It currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks worth consideration from the broader aerospace sector are Spirit AeroSystems Holdings, Inc. SPR, Triumph Group, Inc. TGI and TransDigm Group Incorporated TDG, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for SPR’s 2025 EPS is pegged at 88 cents, unchanged in the past seven days. The long-term EPS growth rate for SPR is 41.7%.
The Zacks Consensus Estimate for TGI’s fiscal 2025 earnings is pegged at 68 cents per share, unchanged in the past seven days. TGI’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with the average surprise being 159.4%.
The Zacks Consensus Estimate for TDG’s fiscal 2025 EPS is pegged at $37.21, unchanged in the past seven days. TDG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.5%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Triumph Group, Inc. (TGI) : Free Stock Analysis Report
Transdigm Group Incorporated (TDG) : Free Stock Analysis Report
Spirit Aerosystems Holdings, Inc. (SPR) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Woodward Up 10% YTD: Can the Stock Gain Further Momentum?

Woodward (WWD) came out with quarterly earnings of $1.35 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 18.42%. A quarter ago, it was expected that this maker of cockpit controls and other equipment for the defense and aerospace markets would post earnings of $1.22 per share when it actually produced earnings of $1.41, delivering a surprise of 15.57%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Woodward, which belongs to the Zacks Aerospace - Defense Equipment industry, posted revenues of $772.73 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.74%. This compares to year-ago revenues of $786.73 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Woodward shares have added about 11.3% since the beginning of the year versus the S&P 500's gain of 2.7%.
What's Next for Woodward?
While Woodward has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Woodward: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.45 on $836.16 million in revenues for the coming quarter and $6 on $3.39 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Aerospace - Defense Equipment is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Spirit Aerosystems (SPR), another stock in the same industry, has yet to report results for the quarter ended December 2024.
This aircraft parts maker is expected to post quarterly loss of $1.86 per share in its upcoming report, which represents a year-over-year change of -487.5%. The consensus EPS estimate for the quarter has been revised 21% lower over the last 30 days to the current level.
Spirit Aerosystems' revenues are expected to be $1.48 billion, down 18.4% from the year-ago quarter.
Should You Invest in Woodward, Inc. (WWD)?
Before you invest in Woodward, Inc. (WWD), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Woodward, Inc. (WWD) : Free Stock Analysis Report
Spirit Aerosystems Holdings, Inc. (SPR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Woodward (WWD) Q1 Earnings Beat Estimates

Boeing (NYSE: BA) faces ongoing challenges in 2025. Still, it also has opportunities to execute on its existing backlog in its commercial aerospace and defense businesses.
Despite the company's difficulties, it closed the year with a major order from Pegasus Airlines that reiterates the underlying demand for Boeing airplanes. To maximize returns for investors, Boeing needs to execute better starting in 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
In that context, here are three things investors need to look out for from the company in 2025.
Boeing's opportunity on the 737 MAX
Turkey-based Pegasus Airlines' firm order for 100 Boeing 737 MAX airplanes, with the option to order a further 100, highlights the strength of ongoing demand and Boeing's backlog. As of the end of November, Boeing's total commercial airplane backlog stood at 6,268, with 4,818 of it in the 737 MAX.
To put that figure into context, earlier this year, Boeing planned to reach a stable rate of 38 deliveries a month on the Boeing 737 MAX by the end of the year. That equates to 456 a year, a rate implying a 10-year backlog on the 737 MAX.
In 2025, Boeing will undoubtedly want to prioritize boosting 737 MAX production. Unfortunately, a combination of self-imposed measures taken to slow production and improve manufacturing quality in light of the Alaska Airlines blowout in early 2024, and industrial action meant Boeing's delivery rate disappointed in 2024.
Data source: Boeing presentations. Chart by author.
The first step to recovery is reaching the initial target of 38 monthly deliveries on the 737 MAX.
It won't be easy. After all, Boeing will need to ensure its suppliers align with its delivery rates, not least because the 38-per-month rate is the start of the ramp-up. Fuselage supplier Spirit AeroSystems, a company Boeing intends to acquire in 2025, is struggling financially , and CFM International, the GE Aerospace joint venture that supplies 7373 MAX engines, missed its engine production target in 2024 amid ongoing supply chain difficulties.
As such, hitting the initial target would be a major positive for the stock, and investors should look out for commentary on the matter.
Image source: Boeing.
Working through problematic defense programs
The following chart indicates the difficulties that Boeing's defense, space, and security (BDS) segment face.
Data source: Boeing presentations. Chart by author.
Former BDS CEO Ted Colbert left the company in September, after Kelly Ortberg had been appointed Boeing CEO in the summer. The segment's problems stem from cost pressures and overruns on a collection of fixed-price development programs, including the KC-46 tanker, a refueling aircraft; the MQ-25, an aerial refueling drone; the VC-25B, better known as Air Force One; and the T-7 training aircraft. These represent about 15% of its revenue. It's also faced cost issues with its fighter and satellite programs, making up 25% of its revenue.
There's clearly an opportunity for Boeing to do better at BDS, and the earliest step in that recovery comes from growing profit at the 60% of its business that is profitable. The strike delivered a hit to that profitability in the third quarter, but now that the strike is over, BDS should improve profitability in those businesses. Furthermore, Boeing can continue to work through the fixed-price development programs. As such, investors can hope for BDS return to profitability in 2025.
Keeping the 777X back on track
Boeing has more than 480 orders on its widebody 777X , including 205 from Emirates. The problem is that the 777X, an airplane originally planned for delivery in 2020, won't have its first delivery until 2026.
The delays aren't just frustrating for airlines, not least as they force them to make fleet amendments. They also result in multibillion-dollar charges at Boeing and tie up cash in inventory before the planes are delivered.
The good news is the end market remains buoyant, with United Airlines Chief Commerical Officer Andrew Nocella noting in mid-October, "The fact is that the production lines for widebody aircraft probably will not keep up with demand over the next three to five years, based on everything we see."
Here again, there's an opportunity for Boeing to execute better, and given that expectations are so low, merely staying on track with the estimate for the first delivery rate in 2026 will be a positive for the stock.
A return to former glories
The end market environment remains favorable in both commercial aerospace and defense. If Boeing will deliver significant value for shareholders, the three factors I've laid out here have to be considered. With the labor dispute out of the way and new leadership in place, Boeing is largely a self-help story, but it won't have a happy ending unless Boeing can ramp up 737 MAX deliveries, return BDS to profitability, and keep the 777X on track.
Should you invest $1,000 in Boeing right now?
Before you buy stock in Boeing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boeing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $823,000!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of December 30, 2024
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group and GE Aerospace. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

The Ultimate Guide to Investing in Boeing for Maximum Returns

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares U.S. Aerospace & Defense ETF (Symbol: ITA), we found that the implied analyst target price for the ETF based upon its underlying holdings is $168.94 per unit.
With ITA trading at a recent price near $152.88 per unit, that means that analysts see 10.51% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of ITA's underlying holdings with notable upside to their analyst target prices are Ducommun Inc. (Symbol: DCO), AAR Corp (Symbol: AIR), and Spirit AeroSystems Holdings Inc (Symbol: SPR). Although DCO has traded at a recent price of $67.43/share, the average analyst target is 14.19% higher at $77.00/share. Similarly, AIR has 12.49% upside from the recent share price of $70.82 if the average analyst target price of $79.67/share is reached, and analysts on average are expecting SPR to reach a target price of $36.25/share, which is 11.20% above the recent price of $32.60. Below is a twelve month price history chart comparing the stock performance of DCO, AIR, and SPR:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
iShares U.S. Aerospace & Defense ETF
ITA
$152.88
$168.94
10.51%
Ducommun Inc.
DCO
$67.43
$77.00
14.19%
AAR Corp
AIR
$70.82
$79.67
12.49%
Spirit AeroSystems Holdings Inc
SPR
$32.60
$36.25
11.20%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Top Ten Hedge Funds Holding HKIT
PZZI Videos
DP Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

We Did The Math ITA Can Go To $169

(RTTNews) - Spirit AeroSystems Holdings, Inc. (SPR), Tuesday announced an Advance Payments Agreement by which Boeing Co. (BA) will pay an advance of up to a total of $350 million to produce Boeing products at the rates required by Boeing.
The payments will help Spirit's high levels of inventory and lower operational cash flows, decrease in expected deliveries to Boeing and higher factory costs to maintain rate readiness, and lingering effects brought on by the recent strike by Boeing employees.
Under the agreement, the company will repay 25 percent of the advances on April 30, 2026, June 30, 2026, September 30, 2026, and December 31, 2026.
Currently, Spirit's stock is trading at $31.34, up 1.06 percent on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Spirit Aerosystems Holdings, Inc.

Sign up and unlock all the capabilities of the AI-screener