Boeing Shares Dive but Remain DJIA’s Top Performer Last Week

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Boeing Co.’s (NYSE: BA) share price dropped by more than 3% last week, but that was not enough to end the stock’s run as the best performer among the 30 stocks that make up the Dow Jones Industrial Average. Shares plunged by $8.29 last week to whittle the year-to-date gain by more than five percentage points to 64.7%.

The three other stocks closest to Boeing had more success, with Caterpillar Inc. (NYSE: CAT) adding nearly 5% to post a year-to-date gain of 48.6%, Apple Inc. (NASDAQ: AAPL) adding about 4.4% for a gain of 40.8% for the year, and Visa Inc. (NYSE: V) tacking on 2% to raise its 2017 increase to 40.6%.

Boeing reported third-quarter results last Wednesday that beat consensus estimates on both the top and bottom lines. But the company took a total charge of $329 million against its KC-46A tanker program and lowered is some of its full-year margin estimates.

Last week’s share price drop likely resulted from Boeing’s rather airy statements regarding raising production rates on the 737 from its current 47 per month to more than the 57 per-month rate the company has targeted for 2019.

Similarly, the company expects its global services business to juice sales for the year by $14.5 billion with margins of around 15.5%. The CEO has said he expects the services business to reach $50 billion in annual sales within the next several years.

Boeing stock closed at $256.46 on Friday, down about 1.1% on the day, in a 52-week range of $138.80 to $267.21. The 12-month consensus price target is $285.09, nearly $9 a share higher than last week’s target. The low price target is $203 and the high is $350.